Bitcoin ETFs, Crypto Whales Accumulate BTC as Price Hits $66K Despite Ongoing Market Uncertainties

Bitcoin exchange-traded funds (ETFs) have accumulated over $1 billion in BTC in the last three trading days, indicating strong investor interest.

Bitcoin exchange-traded funds (ETFs) have seen a rapid influx of over $1 billion in BTC over the last three trading days, indicating strong institutional and retail participation amid rising market uncertainties.

This surge in funds coincides with Bitcoin’s price reaching $66,000. As Farside Investors’ data shows, spot Bitcoin ETFs experienced a net inflow of over $422.5 million on Tuesday, the highest single-day inflow this month.

Of this total, BlackRock’s iShares Bitcoin Trust (IBIT) received the bulk, with about $260.2 million, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw an inflow of approximately $61.1 million. Notably, there were no outflows from any Bitcoin ETFs during the past three trading days.

This sustained institutional demand has played a crucial role in Bitcoin’s recent price appreciation and market performance.

Meanwhile, crypto whales have also been accumulating substantial amounts of BTC. On July 15, data from CryptoQuant showed that Bitcoin accumulation addresses received approximately 10,800 BTC, valued at roughly $656.64 million, according to prevailing rates.

In another development, Ki Young Ju, the CEO of CryptoQuant, shared some insights on X (formerly Twitter) regarding the behavior of Bitcoin holders.

Over the last 30 days, mainly custodial wallets, which typically see no outflows, have amassed 85,000 BTC. While some market participants are panic selling, others are capitalizing on the opportunity to buy, and these contrasting forces are shaping the market dynamics.

However, concerns about Mt. Gox have resurfaced, with the defunct exchange recently moving 91,755 BTC (around $5.8 billion) to new addresses, sparking fears among investors. Following this, Kraken announced that it will distribute Bitcoin and Bitcoin Cash (BCH) to those affected by the Mt. Gox collapse.

Despite these concerns, some experts, like Ju, believe the market has overestimated the potential turmoil from Mt. Gox repayments.

“Since 2023, $224 billion in Bitcoin sold, yet the price is up 350%. Even if Mt. Gox’s $3 billion is sold on Kraken, it’s just 1% of the realized cap increase in this bull cycle — manageable liquidity,” Ju explained.

Galaxy’s head of research, Alex Thorn, also argues that the impact on Bitcoin’s selling pressure might be less than anticipated. His assessment is based on a detailed review of bankruptcy filings and discussions with creditors, which led him to conclude that the payout conditions might encourage creditors to hold onto their assets, considering the capital gains taxes involved.

After early payout deductions, individual creditors will receive around 65,000 BTC. Even if 10% of this is sold, only about 6,500 BTC would enter the market — far less than what the market feared initially.

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