Table of Contents
- Spot Bitcoin ETFs splurge $84 million on new Bitcoin purchases on Thursday
- Markets express optimism on the way forward for the broader crypto space
- BlackRock spent more than $1 billion on acquiring new Bitcoin so far in July
Bitcoin ETFs Buy BTC Worth $84 Million on Thursday
Bitcoin exchange-traded funds in the US, a total of 11 of them, collectively purchased Bitcoin worth more than $84 million on Thursday. The lofty figure extends a continuous buying effort from the novel investment vehicles after the Securities and Exchange Commission greenlighted them back in January this year.
Recently, fresh acquisition moves have been seen across the ETF industry that offers genuine Bitcoin to retail traders and professional investors alike. The gradual flow of money into the ETFs is an indicator of persistent investor appetite into the crypto space.
The more money these ETFs spend on Bitcoin, the better the liquidity will be when users go in and trade the original cryptocurrency. Other than trading, market participants may decide to hold the token for the long term. That is also when continuous liquidity is required in order for the funds to be able to honor each and every request for withdrawal.
BlackRock Stands Out as Best Performer in New Purchases
With this in mind, one key player is standing out before the rest as a solid liquidity provider, or LP. BlackRock, the world’s largest asset manager overseeing $10 trillion in diverse investments, splurged a hefty amount of money on getting new Bitcoin.
The asset manager spent more than $1 billion on new Bitcoin purchases in the month of July so far, outperforming every other exchange-traded fund issuer such as Grayscale, ARK, and Fidelity.
BlackRock has been driving the buying momentum across the Bitcoin ETFs, causing excitement and helping the investment landscape get brighter. To this end, traders and investors are optimistic about the long-term growth of the spot BTC ETF industry. What’s so special about it?
What Are Spot Bitcoin ETFs?
Spot Bitcoin ETFs allow the individual or the institutional investor to hold actual Bitcoin, and not any sort of a derivative. Futures-based ETFs, on the other end, allow the market participants to hold futures contracts tied to the price of Bitcoin. By buying a from a spot Bitcoin ETF, traders actually contribute to the overall market cap of the underlying asset — Bitcoin.
What’s Happening with the Price of Bitcoin Today?
With this in mind, the price of the original cryptocurrency kicked off Friday trading fairly flat and unchanged. Bitcoin was trading near $65,000 a piece as traders were getting ready to step into the day. No major economic news is expected, allowing the market to take a breather or move deeper into technical analysis.
