Bitcoin exchange-traded funds in the United States recorded their strongest daily inflow in nearly a month on July 1, 2024, as institutional appetite for the leading cryptocurrency showed no signs of slowing. The surge in capital arrives amid a backdrop of reawakened Satoshi-era wallets and mounting government sell-offs that paint a complex picture for the market heading into the second half of the year.
TL;DR
- Spot Bitcoin ETFs attracted $129.4 million in combined inflows on July 1 — the highest since June 7
- Fidelity’s FBTC led all funds with $65 million, followed by Bitwise at $41 million and Ark 21Shares at $13 million
- The inflows mark five consecutive days of positive flows after a brutal June that saw nearly $1 billion in outflows
- A dormant Bitcoin wallet from 2011 containing 33 BTC suddenly activated after 13 years of silence
- German and U.S. governments continued transferring large BTC and ETH holdings to exchanges
ETF Inflows Signal Renewed Institutional Confidence
The 11 spot Bitcoin ETF products trading in the United States posted a combined inflow of 2,047 BTC, worth approximately $129.4 million on Monday, according to data from SoSoValue. The trading volume across all funds reached $1.36 billion, while total net assets stood at $54.92 billion. This represents the largest single-day inflow since June 7 and the fifth straight day of positive flows.
Fidelity’s Wise Origin Bitcoin Trust (FBTC) dominated the leaderboard, pulling in 1,030 BTC valued at roughly $65 million. Bitwise’s Bitcoin ETF (BITB) secured the second spot with $41 million in new capital, while Ark Invest’s ARKB attracted approximately $13 million. Funds from VanEck, Franklin Templeton, Invesco, and Galaxy Digital recorded modest inflows of around $5 million or less. Notably, both BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC) posted net zero flows for the day.
The recovery is a welcome development after a punishing June. Throughout the month, Bitcoin ETFs bled nearly $1 billion in cumulative outflows as BTC tumbled below $60,000 before staging a recovery. Total net inflows since the funds launched in January now stand at $14.6 billion, according to Farside Investors data.
Satoshi-Era Wallet Wakes After 13 Years
While institutional investors piled into Bitcoin through regulated products, the blockchain itself delivered a jolt of intrigue. Popular cryptocurrency tracker Whale Alert reported that a dormant Bitcoin address containing 33 BTC — worth approximately $2.14 million at current prices — had been activated after lying dormant for 13 years. The wallet’s last recorded activity dated back to 2011, a time when Bitcoin’s pseudonymous creator Satoshi Nakamoto had only recently disappeared from public view.
This was not the only whale making moves. Just days earlier, another dormant wallet transferred a staggering 8,000 BTC — valued at slightly over half a billion dollars — to Binance, the world’s largest cryptocurrency exchange. That particular wallet had been inactive for five and a half years, with its owner having originally purchased the coins in December 2018.
On-chain analytics account SpotOnChain also reported that a single anonymous whale transferred 1,800 BTC to Binance on Monday, just before Bitcoin dropped from $63,800 to the $63,000 level. Over the preceding week, this whale had sent a total of 3,481 BTC, worth $217 million, to the exchange.
Government Sell-Offs Add Selling Pressure
The whale activity coincides with significant government-driven selling. On July 1, both the German and U.S. governments executed large cryptocurrency transfers. The German government moved 1,500 BTC, valued at $94.7 million, with 400 BTC directed to three major centralized exchanges — Bitstamp, Kraken, and Coinbase. The German state still holds 44,692 BTC worth an eye-watering $2.81 billion, most of it seized from the defunct piracy website Movie2K.
Meanwhile, the United States government transferred 3,375 ETH, worth $11.75 million, to a newly created wallet. According to journalist Colin Wu, the Ethereum originated from Estonian crypto entrepreneurs Potapenko and Turogin, who were recently extradited to the United States on charges of crypto fraud and money laundering.
Price Action and Key Levels
Bitcoin traded at approximately $62,558 on July 2, down 1.1% on the day after hitting a weekly high of $63,790 on July 1. The cryptocurrency reclaimed the $63,000 level after dipping below $60,000 in late June, but has struggled to break through resistance above $64,000. On the downside, support sits at $61,500, a level that bulls are keen to defend.
The broader altcoin market was largely in negative territory on the day, though losses remained minor as most tokens cooled off from a recent recovery rally. Analysts note that historically, July has been a bullish month for Bitcoin, and the sustained ETF inflows provide a constructive backdrop for further gains if overhead resistance can be cleared.
Ethereum ETF Anticipation Builds
The bullish ETF narrative extends beyond Bitcoin. ETF Store President Nate Geraci predicted that the upcoming spot Ethereum ETFs “will be the second most successful debut in ETF history, only behind spot BTC ETFs.” Bloomberg senior ETF analyst Eric Balchunas had projected July 2 as a potential launch date for the products, though the SEC returned S-1 registration forms to issuers with requests for revisions, pushing the timeline further into July.
Why This Matters
The convergence of surging ETF inflows, ancient whale wallets springing to life, and coordinated government sell-offs creates a uniquely dynamic environment for Bitcoin. The fact that institutional investors continue pouring capital into spot Bitcoin ETFs — even as governments offload billions in confiscated BTC — speaks volumes about the depth of demand from traditional finance. With Ethereum ETFs on the horizon and historical seasonal patterns favoring July, the cryptocurrency market enters the second half of 2024 with both significant tailwinds and headwinds to navigate.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
five straight days of inflows after junes billion dollar bleed. someone knows something we dont
the timing lines up with quarter end rebalancing too. institutions were buying the june dip while retail panicked about gov selling
fidelity leading with $65M while grayscale was bleeding outflows. the ETF wars are real
FBTC has been quietly eating GBTC lunch all year. cheaper fees actually matter to institutions
fidelity at $65M inflow quietly dominating. their fee structure makes grayscale look like a ripoff
a 2011 whale waking up after 13 years. either they found an old hard drive or someone died and their family found the keys
2011 wallet with 33 BTC waking up is wild. at those prices they probably forgot about it or inherited the drive
33 BTC from 2011 is life changing money at todays prices. whoever that is, they held through 4 bear markets without touching it
33 BTC from 2011 is like $2.2M at those prices. probably found an old laptop in storage. imagine the feeling when you check the balance after 13 years
german gov moving BTC to exchanges and ETF inflows still positive. someone with deep pockets is happily absorbing that selling pressure
someone with deep pockets is absorbing. fidelity alone took in $65M while german gov was dumping. the supply squeeze thesis is playing out in real time