U.S.-listed exchange-traded funds (ETFs) closely tracking bitcoin‘s spot price have experienced a resurgence in investor interest.
On Tuesday, these ETFs collectively saw a substantial net inflow of $422.5 million, marking the highest single-day influx since June 5 and extending a seven-day winning streak. Data from Farside Investors and Coinglass revealed that BlackRock’s IBIT led the charge with over $260 million in inflows, while FBTC attracted $61.1 million. Other funds, excluding GBTC, DEFI, and BTCW, each drew in under $30 million.
Over the past three days alone, these funds have attracted more than $1 billion, underscoring growing investor confidence in bitcoin’s price outlook.
Since its recent low near $53,500 on July 5, BTC has surged by 23% to reach $65,800, according to CoinDesk data. Alongside the ETF inflows, market observers suggest that the price recovery may be attributed to the easing of selling pressure from Germany’s Saxony state. Additionally, favorable developments include increased speculation surrounding pro-crypto sentiments tied to potential U.S. presidential candidate Donald Trump’s stance on cryptocurrencies. Trump’s consideration of BTC supporter and Ohio Republican Senator James David Vance as a potential vice president has also bolstered market sentiment.
Vance, who has been an advocate for BTC and digital assets since 2021, recently circulated a draft version of crypto legislation, reflecting a significant shift in political attitudes towards digital assets. FRNT Financial highlighted this political shift, noting, “This highlights the new-found political relevance of crypto, but also the extent to which digital asset policy has become a part of the Republican vision for the US economy.”
Market optimism remains strong despite occasional setbacks, such as reports of creditor reimbursements from the defunct exchange Mt. Gox on Tuesday, which momentarily affected BTC prices. Overall, the market appears buoyant, with parallels drawn to the sustained rally in technology stocks on Wall Street.
The combination of institutional interest through ETFs and evolving political dynamics surrounding cryptocurrencies suggests a potentially robust future for bitcoin and digital assets in the financial landscape.
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