Australia Bitcoin ETF In Sync With Soaring Institutional Buying, BTC Rally Ahead?

Despite recent heavy outflows in the U.S. Spot Bitcoin ETF market, Australia’s Monochrome BTC ETF witnessed an influx on Tuesday, July 2. Moreover, the institutional buying of BTC has increased lately with further adoption of cryptocurrencies. Hence, market experts have also hinted at an impending Bitcoin rally.

Bitcoin ETF Statistics For U.S. & Australia

On Tuesday, Australia’s Monochrome Bitcoin ETF added 6 BTC. This contrasts sharply with the U.S. market, where Bitcoin ETF flows turned negative, with a net outflow of $13.7 million. Moreover, the Grayscale Bitcoin Trust (GBTC) alone saw an outflow of $32.4 million, indicating significant investor apprehension.

However, some U.S. ETFs, such as BlackRock and Fidelity, experienced positive inflows of $14.1 million and $5.4 million, respectively. This suggests that not all institutional investors are bearish. Meanwhile, the Bitcoin price fell from $63,000 to $60,500, now hovering around $60,900, reflecting the market’s nervousness amid the ongoing Mt. Gox $9 billion Bitcoin distribution and the German government’s daily small-scale sales.

Interestingly, while the U.S. Spot Bitcoin ETFs faced outflows last week, institutional buying of Bitcoin soared, with inflows reaching $738 million in June. According to CoinShares data, despite the significant outflows, the weekly Bitcoin inflow stood at $10 million. This surge in institutional buying is significant as it indicates renewed confidence in Bitcoin’s long-term potential.

Earlier, on Monday, July 1, the U.S. Spot Bitcoin ETFs recorded a substantial $130 million influx. Bitcoin maximalist Lucky highlighted this on X, stating, “Historically, July has been a bullish month for $BTC, with an average return of over 11% in the last decade. $130M flowed into #Bitcoin ETFs yesterday, the biggest splash in 3 weeks!” In addition, he suggested that this surge could signal renewed institutional interest. It could potentially setting the stage for a bullish month ahead.

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Experts Weigh In Institutional Adoption Of BTC

Prominent crypto investor Anthony Pompliano also weighed in on the matter. In a post on X, he wrote, “Retail and institutional investors are convinced of the long-term resilience of Bitcoin, so they aggressively buy dips.” He emphasized that current drawdowns are smaller compared to historical patterns, underscoring the growing confidence among investors.

Further insights from Gabor Gurbacs, VanEck advisor, shed light on institutional activities. He noted that over-the-counter (OTC) desks accumulated Bitcoin during the recent market correction, using some of it as collateral. This indicates a shift from purely neutral trades to strategic accumulation.

Moreover, he elaborated that large holders and bankrupt estates are likely to have more Bitcoin available to lend later this year. This reinforces the idea that major players are not inclined to sell their Bitcoin holdings. In addition, Gurbacs also pointed out the expanding Bitcoin-based credit markets, facilitated by the introduction of ETFs, which have improved the credit quality of counterparties.

Furthermore, he emphasized that this growing credit market will likely fuel the next major Bitcoin rally. Gurbacs stated, “While many may not be comfortable with lending or borrowing Bitcoin, ETFs have inadvertently created a large and expanding institutional BTC credit market that grows with every new trade.”

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