ETFs

Bitcoin (BTC) Price Drop Boosts Spot ETF Buying

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Back on their screens after the July 4 break, American traders were faced with a historic drop in bitcoin (BTC) whose price has fallen by more than 10% from the pre-holiday level. Based on the ETF data, they decided to lift the offer.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the way, taking in $117.4 million in net new money. Other funds with net inflows included the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL). As usual, the high-fee Grayscale Bitcoin Trust (GBTC) continued to bleed assets.

As for price action, bitcoin has seen a very modest rebound since its drop from nearly $61,000 on Wednesday to below $54,000 on Friday morning, currently trading at $56,800. That’s down 6% from last week’s levels and about 23% from its all-time high above $73,500 set in mid-March.

Responsibility for the latest price drop has been placed on concern over a massive surge in supply as administrators of the defunct Mt. Gox exchange started the return 140,000 bitcoins to former customers and the German government apparently moved to sell at least some of the thousands of bitcoins he holds.

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