Spot Bitcoin ETFs Experience $129 Million in Inflows, Highest in Nearly a Month

Spot Bitcoin exchange-traded funds (ETFs) recorded $129.45 million in daily net inflows on Monday, marking the fifth consecutive day of positive inflows for these funds.

This figure also represents the highest level of fund intake since June 7, based on data from SosoValue.

Leading the inflows on Monday was Fidelity’s FBTC, which garnered $65 million in investments.

Bitwise’s BITB closely followed with $41 million in net inflows, while Ark Invest and 21Shares’ ARKB reported $13 million in net inflows.

Invesco, Galaxy Digital, VanEck, and Franklin Templeton also experienced relatively minor inflows, ranging from approximately $5 million to below $5 million.

However, the two largest spot Bitcoin ETFs by net asset value, BlackRock’s IBIT and Grayscale’s GBTC, did not see any inflows on Monday.

These 11 Bitcoin funds collectively generated around $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.

Bitcoin spot ETFs had a total net inflow of $129 million on July 1, continuing a net inflow for 5 consecutive days. Fidelity ETF FBTC had a single-day inflow of $65.034 million, and Bitwise ETF BITB had a single-day inflow of $41.4022 million. https://t.co/Yanotfbotb

— Wu Blockchain (@WuBlockchain) July 2, 2024

Digital Asset Investment Products Experience Outflows in Last Week

Conversely, digital asset investment products overall faced outflows for the third consecutive week, totaling $30 million.

However, the pace of outflows significantly diminished compared to earlier weeks, according to a recent report from 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, although they still fall short of the average weekly volume of $14.2 billion recorded this year.

Regionally, the United States, Brazil, and Australia saw inflows of $43 million, $7.6 million, and $3 million, respectively.

In contrast, Germany, Hong Kong, Canada, and Switzerland experienced outflows of $29 million, $23 million, $14 million, and $13 million, respectively.

Notably, Ethereum experienced its largest outflows since August 2022, amounting to $61 million over 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) saw inflows of $18 million and $10 million, respectively. Short-bitcoin ETPs also faced outflows of $4.2 million, suggesting a potential shift in sentiment.

Additionally, several altcoins, such as Solana and Litecoin, experienced significant inflows.

Analysts Optimistic on Bitcoin in July

Analysts from QCP Capital indicate that both Bitcoin and Ether typically perform well in July due to favorable seasonality.

“Examining seasonality, BTC has a median return of 9.6% in July and tends to rebound strongly, especially following a negative June (-9.85%),” they noted in a recent post on Telegram.

“Our options desk also observed flows positioning for an upside move last Friday into the month-end, possibly in anticipation of the ETH spot ETF launch. Numerous indicators suggest a bullish July.”

QCP mentioned that one potential trading strategy is to consider a BTC Accumulator with an expiry of 20SEP24, lasting for 12 weeks.

This approach involves purchasing BTC below the $60,000 level, capitalizing on the false break of that threshold, and benefiting from the anticipated bullish momentum in the upcoming month.

The strike price for this trade is set at $59,000. However, there is a barrier at $71,000, indicating that the trade will be limited if BTC exceeds that level.

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