On Friday, bitcoin ETF investors seized the opportunity to buy the dip, with inflows surpassing $140 million. Bitcoin’s price experienced a modest recovery after plunging below $54,000 early Friday. Following the July 4 break, U.S. traders returned to witness a historic drop in bitcoin (BTC), which fell over 10% from pre-holiday levels. ETF data shows that traders responded by increasing their positions.
Farside Investors reported that U.S.-based spot bitcoin ETFs saw net inflows of $143.1 million on Friday, the highest in at least two weeks. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the inflows, receiving $117.4 million in net new money. Other funds with notable inflows included the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL). Meanwhile, the Grayscale Bitcoin Trust (GBTC), known for its high fees, continued to see asset outflows.
Bitcoin’s price action showed a modest recovery, rising from nearly $61,000 on Wednesday to under $54,000 early Friday, and currently trading around $56,800. This is a 6% drop from week-ago levels and a 23% decline from its all-time high above $73,500 set in mid-March.
The recent price drop is attributed to concerns over a surge in supply, as trustees for the defunct exchange Mt. Gox began returning 140,000 bitcoin to former customers. Additionally, reports indicate that the German government may be selling some of its bitcoin holdings.