US Spot Bitcoin ETFs Attract Over $1B in Weekly Inflows Despite Bearish Market Sentiment

The Crypto Fear and Greed Index plunged to its lowest level since January 2023.

Key Takeaways

US spot Bitcoin exchange-traded funds (ETFs) attracted over $1 billion in net inflows last week despite the bearish sentiment in the crypto markets, with the Crypto Fear and Greed Index dropping to its lowest level since January 2023.

Data from Alternative.me shows that the Crypto Fear and Greed Index – a tool used to measure overall investor sentiment in the cryptocurrency market, especially towards Bitcoin – fell to 25 in the “extreme fear” zone on Friday.

The low index reading came as the price of Bitcoin (BTC) failed to break the $60,000 level for over a week, remaining stagnant between the $57,000 – $58,000 level, TradingView’s data shows.

Throughout the week, the index remained below 30 until it hit 33 today as Bitcoin reclaimed the $60,000 level.

However, despite the bearish sentiment, US spot Bitcoin ETFs had a good week. According to data from SoSoValue, on Friday alone, US spot Bitcoin ETFs saw $310 million in inflows, marking the highest daily inflow in the past five weeks.

BlackRock’s IBIT led the pack with $120 million in daily inflows, followed closely by Fidelity’s FBTC with about $115 million.

The last time US Bitcoin ETFs pulled in over $310 in daily inflows was on June 5, when investors poured $488 million into these funds, SoSoValue’s data shows.

While investors were actively buying into the US Bitcoin funds, the German government quietly moved their Bitcoin on several crypto platforms.

As covered by Crypto Briefing, on Friday, wallets reportedly belonging to the German government completed shifting $3 billion in Bitcoin to crypto exchanges and addresses that are believed to be linked to OTC trading desks. However, it is not clear whether the government is selling its BTC.

Most crypto traders are still bearish on the short-term future of Bitcoin as the selling pressure from several whales and major entities continues to be felt in the market.

The focus now is on the Mt. Gox creditor repayments, and Wall Street could be using the opportunity to buy the dip.

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