What Dip? Bitcoin ETFs Shake Off 'Dumb Money' Label With $300M Inflows

Spot Bitcoin BTC/USD exchange-traded funds (ETFs) saw nearly $300 million in net inflows on Monday — the highest since early June when BTC traded over $70,000.

What Happened: Data from SoSoValue shows BlackRock's iShares Bitcoin Trust IBIT led the buying spree with $187 million in net inflows. Fidelity's Fidelity Wise Origin Bitcoin Fund FBTC/USD followed with $61 million. Grayscale's GBTC GBTC, known for its outflows, recorded over $25 million in purchases.

Other ETFs showed no inflow or outflow activity. The strong inflows come amid significant selling pressure from sources like the defunct crypto exchange Mt. Gox and a German government entity moving large amounts of BTC to exchanges.

Investment firm CoinShares noted in a Monday report that some investors might view the selling pressure as a buying opportunity. Despite the inflows, volumes in Exchange Traded Products (ETPs) remained relatively low at $7.9 billion for the previous week. This trend reflects typical lower summer volumes. Traders expect July to be bullish for the crypto market, with a historical medium return of 9%.

Why It Matters: Nate Geraci, president of The ETF Institute, recently predicted that Ethereum ETH/USD spot ETFs could launch within the next two weeks. This could further fuel interest in major cryptocurrencies.

However, economist Peter Schiff has voiced concerns that “smart money” is selling Bitcoin in the spot market while “dumb money” buys it through ETFs. Traders, on the other hand, think inflows indicate coins are moving from “weak” to “strong” hands.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Dogecoin, Shiba Inu’s 15% Drop In Seven Days Pushes Meme Coin Valuations Down 10%: ‘Double Down On Positions’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.