US spot Bitcoin exchange-traded funds (ETFs) saw $100.8 million in net inflows on Wednesday after two consecutive days of outflows.
Data from Farside Investors shows that Fidelity took the giant share of inflows on June 12 with $50 million. BlackRock’s Bitcoin ETF saw $15.6 billion in inflows, while the Bitwise Bitcoin inflows scooped $14.5 billion. The VanEck and Ark Invest ETFs also saw $11.6 billion and $8.5 billion, respectively.
Bitcoin ETFs have been on a losing streak this week following a drop in BTC’s price, which saw the king of cryptos drop to below $67,000.
BTC was trading at $67,927 as of 07:37 a.m. EST.
Spot Bitcoin ETFs Record $101M Inflows
Despite the over $100 million inflows on Wednesday, Grayscale’s GBTC ETF saw zero flows. The ETF has seen consistent net inflows since trading in early January. All 11 spot BTC ETFs have attracted $15.52 billion in net inflows since their inception.
The ETFs tend to mimic the price of Bitcoin, given that they give investors indirect exposure to Bitcoin. Earlier this week, Bitcoin’s price dropped from around $70,000 to below $67K, triggering product outflows.
The inflows coincide with the recent Bitcoin price recovery after the US Federal Reserve retained interest rates at the 5.25% – 5.5% range. The anticipation around US inflation data had triggered volatility across the crypto industry.
The data released by the Labor Department on Wednesday portrayed that US inflation did not increase in May, which was in line with market expectations. The data portrayed that inflation could be slowing.
The Federal Open Market Committee (FOMC) failed to trim rates despite easing inflation. However, according to reports, the Federal Reserve anticipates one rate cut before the end of the year.
Rate cuts will hurt the price of the US dollar, which in turn is negatively correlated with Bitcoin. A weakening dollar is a positive for crypto prices, which makes the case for upcoming BTC price gains.
Bitcoin Whales Accumulate After Recent Correction
The recent correction in BTC’s price has seen whales take advantage. Data from CryptoQuant shows that since the drop below June 11, whales have accumulated 20,600 BTC valued at $R1.38 billion.
The recent intake of whales was the largest since the end of February this year. At the time, BTC was approaching a record high, promoting whales to accumulate more coins.
Besides an accumulation by whales, traders are also withdrawing their BTC from exchanges, which indicates positive market sentiment. According to Santiment, the supply of Bitcoin on cryptocurrency exchanges has dropped to the lowest level since December 2021.
Investors anticipate a mid-to-long-term price increase as Bitcoin reserves drop and whales accumulate. Bitcoin is currently down 7.9% from its all-time high above $73,000.
