BlackRock’s Spot Bitcoin ETF Investors Still Accumulating Despite Subdued Outlook

Despite a bearish sentiment for Bitcoin, BlackRock Spot Bitcoin ETF IBIT has recorded massive inflows since last week Monday.

Bitcoin ETF Flow (US$ million) - 2024-07-18

TOTAL NET FLOW: 84.8
(Provisional data)

IBIT: 102.7
FBTC: 2.8
BITB: 0
ARKB:
BTCO: 0
EZBC: 0
BRRR: 0
HODL: 1.8
BTCW: 0
GBTC: -22.5
DEFI: 0

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

- Farside Investors (@FarsideUK) July 19, 2024

IBIT recorded inflows of $107 million on July 18, its ninth consecutive day of inflows. Seven of these nine days were inflows exceeding $100 million, a rare achievement in the ETF sector.

However, crypto traders show minimal optimism despite the massive inflows to Spot BTC ETFs.

BlackRock Shines as Positive Bitcoin Commentary Declines

According to the co-founder of Apollo Thomas, BlackRock purchased over $1 billion worth of Bitcoin in July.

JUST IN: Blackrock has purchased over $1B worth of #Bitcoin this month - Including $107M Today.

That's 18,600 #Bitcoin

This is a total acceleration of inflows pic.twitter.com/nPptlIyEvX

- Thomas | heyapollo.com (@thomas_fahrer) July 18, 2024

These figures include the $107 million purchase made today, July 19, totaling 18,600 BTC in July, confirming an increase in inflows.

Data from the analytical firm Farside Investors also reveals that Fidelity's FBTC, second on the list, recorded $2.8 million in inflows. Meanwhile, Grayscale's ETF GBTC recorded outflows of $22.5 million.

However, crypto traders' optimism declined despite the massive inflows. Analytical platform Santiment reveals that positive comments for Bitcoin dropped despite the uptrend in the crypto market.

Positive commentary toward Bitcoin has plummeted despite the mid-sized crypto market bounce this week. Many traders, particularly on @binance, are opening shorts with the expectation of BTC dropping again. Both of these factors increase the likelihood of cryptocurrency rising. pic.twitter.com/50Z1TvJpUx

- Santiment (@santimentfeed) July 18, 2024

According to Santiment, the number of positive Bitcoin comments reduced to one-third of its size four months ago. Santiment monitors social sentiment from social networks like X, Reddit, and BitcoinTalk.

Santiment noted an increase in buy the dip" mentions on these social platforms at the beginning of the month. On July 5, BTC declined to a five-month low of $53,600. However, ithas recovered significantly and is trading close to the $65,000 price level.

Also, many Binance traders are opening short positions, hoping Bitcoin will decline soon. Santiment believes that these bearish factors will drive Bitcoin's price higher.

Investors remain in an active accumulation phase despite the decline in positive comments. The Crypto Fear and Greed Index indicates greed today as Bitcoin and other cryptocurrencies show positive price action.

While Bitcoin ETFs record inflows and BTC's price looks positive, miners are still under pressure to sell.

BTC Hash Rate Could Drop to Bear Market Levels, but Miners Are Not Selling

Bitcoin's hashrate declined at the beginning of July to levels last recorded in the December 2022 beat market. BTC miners' capitulation was responsible for this decline.

Miners have struggled to keep operational costs below rewards since Bitcoin's halving in April.

However, despite bearish conditions, miners such as Marathon Digital Holdings did not sell any BTC tokens in June. Marathon Digital Holdings operational report shows it has reserved 18,536 BTC tokens despite selling pressure.

Data reveals that Bitcoin hashrate has a slight correlation to its price action. According to market strategist James E. Thorne, halving miners' rewards affected Bitcoin's supply-demand dynamics. Therefore, he believes it will likely lead to a rally for Bitcoin due to scarcity.

The Bitcoin Spot ETF inflows, and miners holding onto their BTC tokens will likely result in positive price action for Bitcoin.

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