Bitcoin News Today: Bitcoin ETFs See $2.39 Billion Inflows Driven By GENIUS Act

Bitcoin ETFs have experienced a remarkable surge in inflows, totaling $2.39 billion over the past six weeks. This unprecedented trend underscores a growing institutional confidence in the cryptocurrency market, particularly driven by the enactment of the GENIUS Act. The legislation, signed into law, provides much-needed regulatory clarity for digital assets, marking a pivotal moment for the industry.

Key institutional players, such as BlackRock, have been at the forefront of this investment wave. BlackRock's iShares Bitcoin Trust (IBIT) alone saw inflows of $496.75 million on July 18, highlighting the significant interest and trust among financial institutions. Other ETFs, like WisdomTree, also reported modest gains, while Fidelity and Grayscale experienced net outflows. This influx of institutional capital has been instrumental in driving Bitcoin prices to a record high of $122,800 during the observed week, demonstrating the profound impact of regulatory developments on market behaviors and asset pricing.

The GENIUS Act, signed by President Donald Trump, has played a crucial role in this surge. By establishing clear frameworks for stablecoins and their issuers, the act has fostered an environment of increased liquidity and demand. This regulatory clarity has been pivotal in attracting institutional investors, who now have a more secure and transparent landscape to operate within. The act mandates full reserves backed by the US Dollar and provides clear anti-money laundering guidance, positioning the US as a leader in stablecoin regulation.

Historical data suggests that regulatory developments often precede long-term market adjustments, leading to increased liquidity and stability. The GENIUS Act, by providing a clear regulatory framework, may spur further institutional interest and investment into the digital asset domain. While Bitcoin remains at the center of this trend, positive sentiment could extend to other cryptocurrencies like Ethereum, further bolstering the overall market.

The sustained institutional demand for Bitcoin is evident in the total inflow of $2.39 billion into Bitcoin Spot ETFs last week, marking the sixth consecutive week of positive flows since mid-June. This trend indicates that institutional investors remain bullish on Bitcoin, despite its recent price consolidation. The Relative Strength Index (RSI) on the daily chart reads 66 and points upward, indicating bullish momentum. However, the Moving Average Convergence Divergence (MACD) indicator is about to flip a bearish crossover, which could give a selling signal if it shows a bearish crossover on a daily basis.

The passage of the GENIUS Act into law is a significant milestone for the crypto industry. It provides a clear regulatory framework for stablecoins and their issuers, which could pave the way for other countries to review their own stablecoin regulations. The act also prohibits any action towards creating and promoting a Central Bank Digital Currency (CBDC) and reverses the previous administration's order on digital assets. This development could serve as a first step towards establishing a Bitcoin strategic reserve, as promised by Trump during his presidential campaign.