BlackRock’s spot Bitcoin exchange-traded fund (ETF) continues to attract substantial investment, even as bullish sentiment wanes. Since last Monday, the BlackRock-issued iShares Bitcoin Trust (IBIT) has garnered millions from investors, demonstrating robust and consistent inflows. Notably, on July 18 alone, the iShares Bitcoin Trust experienced $107 million in inflows, marking the ninth consecutive day of significant investments. Impressively, seven out of these nine days saw inflows exceeding $100 million.
This consistent influx of capital into BlackRock’s Bitcoin ETF starkly contrasts with the prevailing sentiment among crypto traders. According to market intelligence firm Santiment, positive Bitcoin commentary on social media has significantly decreased compared to four months ago. Simultaneously, an increasing number of traders are taking short positions on Bitcoin, anticipating further price declines.
“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,” noted Santiment.
Despite the drop in positive mentions, broader market sentiment remains relatively optimistic. The Crypto Fear and Greed Index, which gauges market sentiment, currently positions the market in the “Greed” zone with a score of 60 out of 100. This marks a notable rebound from the “Extreme Fear” zone, where the index scored 25 out of 100 on July 12, the lowest level since January 2023.
The dichotomy between the strong inflows into BlackRock’s Bitcoin ETF and the cautious sentiment among traders underscores the complex dynamics at play in the cryptocurrency market. While institutional investors continue to pour capital into Bitcoin, retail traders exhibit caution, reflecting the nuanced and evolving nature of market sentiment.
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