The State of US Bitcoin ETFs
US spot Bitcoin ETFs observed a net outflow of $20.45 million on Wednesday, with only two funds demonstrating activity amid market uncertainties. Grayscale’s GBTC experienced a $26.99 million exit while Fidelity’s FBTC gained $6.55 million. The remaining funds, such as BlackRock’s IBIT, Bitwise’s BITB, and VanEck’s HODL, reported no flows during this period.
Market Momentum for US Bitcoin ETFs
As per data compiled by SoSoValue, the trading volume for these 11 funds amounted to approximately $800 million on July 3rd, a drop from the previous day’s $995 million. In comparison, daily trading volumes ranged from $8-$10 billion in March. Since their launch in January, these ETFs have collectively attracted $14.62 billion in net inflows.
The beginning of July showed a positive trend, with US spot Bitcoin ETFs experiencing their highest daily influx in nearly a month on the first day, totaling $129 million. Historically, Bitcoin often starts July on an upward trajectory. However, subsequent flows have been lackluster, disappointing investors.
While July typically proves to be a strong month for Bitcoin, the initial week of the month was quite tumultuous, with Bitcoin tumbling to $56,770, a level last witnessed in February. Contributing factors to this decline include Germany’s government transferring a considerable amount of confiscated Bitcoin tokens and significant sell-offs by whales, as observed by Spotonchain.
Potential Increase in Bitcoin ETF Flows
In light of these developments, there is the possibility of an uptick in Bitcoin ETF flows. Bitfinex’s Head of Derivatives, Jag Kooner, mentioned to CryptoPotato that if market participants believe economic uncertainty will lead the Fed to consider rate cuts, Bitcoin’s attractiveness as an inflation hedge could rise. However, notable inflows are contingent on broader market sentiment and risk appetite. Currently, there has been a lack of significant flows and ‘dip-buying.’
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