ETFs
US Bitcoin ETFs See $20.45 Million Outflow: Nine Funds Hold Steady
US spot Bitcoin ETFs saw a net outflow of $20.45 million on Wednesday. Interestingly, only two of them showed activity amid market uncertainty.
Grayscale’s GBTC saw an outflow of $26.99 million, while Fidelity’s FBTC gained $6.55 million. The remaining nine funds, including BlackRock’s IBIT, Bitwise’s BITB, and VanEck’s HODL, reported no flows.
Bitcoin ETF Market Momentum in the US Is Running Out of Steam
According to data According to SoSoValue, trading volume for these 11 funds reached about $800 million on July 3, down from $995 million the day before. This is a significant drop from March, when daily volume ranged from $8 billion to $10 billion. Despite the recent fluctuations, the ETFs have attracted a total of $14.62 billion in net inflows since their launch in January.
WE spot Bitcoin ETFs started the month of July in a positive way, registration On the first day, Bitcoin ETFs saw their largest daily inflow in nearly a month, totaling $129 million. This is in line with historical trends, showing that Bitcoin often starts July with an uptrend. The new inflows were a positive sign after a tumultuous June that left Bitcoin ETFs struggling.
But the weak financial flows that followed dampened investors’ hopes.
While July has historically been a strong month for the world’s largest digital asset, the first week was eventful to say the least. Bitcoin fell to $56,770, a level last seen in February.
The recent price drop came after the German government moved another batch of confiscated Bitcoin tokens. According to Arkham Intelligence, around 1,300 BTC, worth nearly $76 million, were sent to three major exchanges – Kraken, Bitstamp, and Coinbase. An additional $99 million worth of Bitcoin was transferred to a separate address identified as 139Po.
Additionally, whales are selling again. On July 4, Spotonchain, an on-chain monitoring platform, observed a transfer of 1,700 BTC valued at over $99 million to Binance.
This activity indicates that these entities are taking profits. Additionally, the timing of this action, following the recent drop in Bitcoin price, suggests that this could be a risk mitigation strategy, likely aimed at reducing their Bitcoin holdings.
A surge in Bitcoin ETF flows?
Despite the gloomy picture, Bitcoin ETF flows could see a boost.
In a statement to CryptoPotato, Bitfinex’s head of derivatives Jag Kooner said that a surge in ETF inflows could occur if market participants believe that “economic uncertainty will push the Fed toward potential rate cuts, reinforcing Bitcoin’s appeal as an inflation hedge.”
“However, significant inflows would depend on overall market sentiment and risk appetite. Currently, however, we have seen quite disappointing flows and a lack of dip buying recently.”