Bitcoin ETFs See Massive Inflows of $129M, the Highest in Nearly a Month
Bitcoin exchange-traded funds (ETFs) focused on spot trading experienced a significant influx of $129.45 million in net inflows on Monday. This marks the fifth consecutive day of positive flows for these funds and the highest level of fund intake since June 7, according to data from SosoValue.
Leading the way in terms of inflows on Monday was Fidelity’s FBTC, which attracted $65 million in investments. Bitwise’s BITB closely followed with $41 million in net inflows, while Ark Invest and 21Shares’ ARKB saw $13 million in net inflows.
Invesco, Galaxy Digital, VanEck, and Franklin Templeton also saw relatively minor inflows, ranging from around $5 million to below $5 million. However, the two largest spot Bitcoin ETFs in terms of net asset value, BlackRock’s IBIT and Grayscale’s GBTC, did not witness any flows on Monday.
These 11 Bitcoin funds collectively generated approximately $1.36 billion in trading volume on Monday. Since their launch in January, the ETFs have accumulated a total net inflow of $14.65 billion.
Digital Asset Investment Products Experience Outflows in the Last Week
On the other hand, digital asset investment products as a whole saw outflows for the third consecutive week, totaling $30 million. However, the rate of outflows decreased significantly compared to previous weeks, as reported by CoinShares.
While most providers experienced minor inflows, Grayscale reported outflows of $153 million. Trading volumes for digital asset investment products increased by 43% week-on-week, reaching $6.2 billion. However, they still remain below the average weekly volume of $14.2 billion seen so far this year.
Geographically, the United States, Brazil, and Australia all saw inflows of $43 million, $7.6 million, and $3 million, respectively. Conversely, Germany, Hong Kong, Canada, and Switzerland experienced outflows of $29 million, $23 million, $14 million, and $13 million, respectively.
Notably, Ethereum saw its largest outflows since August 2022, totaling $61 million in the past week. This brings the total outflows for the last two weeks to $119 million, making Ethereum the worst-performing asset in terms of net flows year-to-date.
Meanwhile, multi-asset and Bitcoin exchange-traded products (ETPs) received inflows of $18 million and $10 million, respectively. Short-bitcoin ETPs, on the other hand, experienced outflows of $4.2 million, suggesting a potential change in sentiment.
Additionally, several altcoins, including Solana and Litecoin, saw significant inflows.
Analysts Optimistic about Bitcoin in July
Analysts from QCP Capital are optimistic about the performance of Bitcoin and Ether in July due to positive seasonality. They noted that Bitcoin historically has a median return of 9.6% in July and tends to rebound strongly, especially after a negative June.
One potential trade idea they suggested is a BTC Accumulator with an expiry of 20SEP24, lasting for 12 weeks. This strategy involves buying Bitcoin below the $60,000 mark, taking advantage of the false break of that level, and benefiting from the expected bullish momentum in the coming month. The strike price for this trade is set at $59,000, with a barrier at $71,000.
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