US spot Bitcoin ETFs have experienced a net outflow of $20.45 million on Wednesday, with only two of them showing activity amid market uncertainty. Grayscale’s GBTC saw a $26.99 million exit, while Fidelity’s FBTC gained $6.55 million. The remaining nine funds did not report any flows, including BlackRock’s IBIT, Bitwise’s BITB, and VanEck’s HODL. Despite recent fluctuations, these ETFs have attracted a total of $14.62 billion in net inflows since their launch in January.
Data compiled by SoSoValue shows that trading volume for these 11 funds reached around $800 million on July 3rd, down from $995 million the previous day. This marks a significant decrease from March when daily volume ranged from $8-$10 billion. Despite the recent decrease in trading volume, US spot Bitcoin ETFs saw their largest daily influx in almost a month on the first day of July, totaling $129 million. This positive start aligns with historical patterns, showing Bitcoin often beginning July with an upward trend.
However, the subsequent dull flows have dampened investor hopes, especially as Bitcoin dropped to $56,770, a level last seen in February. The recent price decline followed Germany’s government moving another batch of confiscated Bitcoin tokens, totaling about $176 million worth of BTC. Additionally, whales have been observed selling off large amounts of Bitcoin, indicating a profit-taking strategy and a move to reduce their Bitcoin holdings as a risk mitigation measure.
Despite the recent market turbulence, there is a possibility of an uptick in Bitcoin ETF flows. Bitfinex’s Head of Derivatives, Jag Kooner, mentioned that an increase in ETF inflows could happen if market participants believe economic uncertainty will lead to eventual rate cuts by the Fed, making Bitcoin more appealing as an inflation hedge. However, significant inflows will depend on broader market sentiment and risk appetite, as current flows have been underwhelming with a lack of ‘dip-buying’. Investors are closely monitoring the market to gauge potential trends.
Overall, the US spot Bitcoin ETF market momentum has waned in the first week of July amidst market uncertainty and price fluctuations. While historical patterns show Bitcoin often begins July on an upward trend, recent dull flows and price drops have left investors cautious. The recent movement of confiscated Bitcoin tokens by Germany’s government, as well as whales selling off large amounts of Bitcoin, have added to market volatility. Despite the current bleak picture, there is a possibility of an uptick in Bitcoin ETF flows depending on broader market sentiment and economic indicators. As investors navigate through the turbulent market conditions, they will be closely monitoring ETF inflows to assess potential trends.
