- US spot Bitcoin ETFs are accumulating tokens at a fast pace, leveraging the recent dip
- BlackRock, the owner of the biggest ETF, is sitting on 312,000 orange coins
- Fidelity purchased the most Bitcoin on Wednesday, a total of 1,002 pieces
Spot BTC ETFs Pick Up Tokens Worth $127 Million
Spot Bitcoin exchange-traded funds in the US marked another green day with a fresh buying spree. On Wednesday, 11 ETFs holding genuine Bitcoin spent as much as $127 million on more than 2,000 Bitcoin.
Fidelity, the second-largest owner of a Bitcoin ETF, acquired the most. The investment vehicle scooped up as much as 1,002 Bitcoin worth an estimated $58 million. Moreover, the net new money inflow indicates increased buying appetite from professional money managers. It’s worth noting that this recent big-ticket purchase of Bitcoin was made during a low point in Bitcoin’s price.
The leading cryptocurrency was floating under the $60,000 mark, far from its all-time high of over $73,000 notched earlier this year. The elevated optimism over the nascent digital asset space signals that large-scale asset managers remain committed to the industry’s growth and expansion.
Broader Adoption Through Spot Bitcoin ETFs
This, in turn, helps lower the entry barrier and allow for wider adoption. Bitcoin ETFs that are flush with tokens allow everyone who wants a piece to participate in the market. Given that the tokens are sitting in regulated investment platforms, right next to stocks and bonds, ordinary consumers could jump in at any time and get in on the action.
Against that backdrop, BlackRock, the world’s largest asset manager with investments worth more than $10 trillion, is currently the biggest holder of Bitcoin. Its own Bitcoin ETF has picked up over 312,000 tokens since inception in January for the mind-boggling price of $18 billion. The fund did not reduce its allocation by a single Bitcoin.
Not a Single Coin Sold During Downturn
In other words, BlackRock didn’t sell a single token in the recent drawdown, which erased about 20% from Bitcoin’s record-high price to current market levels. It has to be noted that institutional investors are generally more resilient during market downturns because they provide trading conditions for retail traders and investors.
To this end, Bitcoin was floating fairly flat earlier today. The original crypto asset was changing hands around $58,000 as it was hugging the flatline for the session. No major news has seen investors consolidate around recent prices as they wait for a fresh catalyst that could stir the crypto landscape.
Inflation Data to Stir Crypto Prices
One such catalyst could be today’s inflation report. The consumer price index from the US will show whether inflation pressures eased in June. On an annualized basis, markets are looking for price growth of 3.1% for the past month, lower than the 3.3% realized in May.
Markets hope inflation is declining so that the Federal Reserve cancan finally decide to slash borrowing costs or cut interest rates. If today’s print shows lowering inflation, a cut to interest rates could come sooner than anticipated. But if the reading shows price pressures remained heightened, a rate cut might be pushed back to the end of 2024.
