Bitcoin ETFs Report Inflows Again as BTC Holds Firm at $60K
Ruholamin Haqshanas
Updated: June 27, 2024, 03:30 EDT | 2 min read
Exchange-traded funds (ETFs) for spot Bitcoin in the United States have seen positive net inflows for the second consecutive day.
On Wednesday, these ETFs recorded $21.52 million in net inflows, continuing the upward trend that started on Tuesday.
According to data from SoSoValue, the largest inflows were observed in Fidelity’s FBTC, attracting $19 million.
Grayscale’s GBTC also saw inflows of $4 million, marking its first positive flow since June 5. VanEck recorded $3 million worth of inflows on Wednesday as well.
However, not all funds shared this positive trend. Ark Invest and 21Shares’ ARKB experienced net outflows totaling $5 million. Other funds like BlackRock, Bitwise, and Valkyrie saw no net flows during this period.
Since their introduction in January, spot Bitcoin ETFs have accumulated a total of $14.44 billion in net inflows, underscoring their growing popularity among investors.
Meanwhile, Bitcoin’s price, which dipped to $59,021.42 on Monday for the first time since May 3, managed to stay above the crucial $60,000 threshold.
As of now, BTC is trading at $60,633, reflecting a 1.5% decrease over the past day. Over the last week, the leading cryptocurrency has dropped nearly 11%.
Last week, CryptoQuant indicated that Bitcoin’s lack of bullish momentum might push it back down to the $60,000 level after breaking below the critical support at $65,800.
On-chain data shows that traders have been reducing their holdings since Bitcoin peaked at $70,000 in late May, with no signs of renewed buying activity.
For the month, Bitcoin has declined by almost 10%. Despite briefly touching $71,000 at the start of June, it has been steadily declining since then.
Since mid-March, Bitcoin has largely traded between $60,000 and $70,000 after reaching its all-time high of $73,797.68.
Digital Asset Products Witness $584M in Outflows This Week
CoinShares, a crypto-focused asset manager, reported that digital asset investment products faced a second consecutive week of outflows, totaling $584 million.
Investor sentiment, influenced by concerns over potential Federal Reserve interest rate cuts, likely contributed to this trend.
Last week also saw the lowest trading volumes globally for exchange-traded products (ETPs) since the launch of U.S. ETFs in January, with total trades amounting to just $6.9 billion throughout the week.
Meanwhile, U.S. issuers are actively preparing to launch spot ether ETFs following the conditional approval received from the Securities and Exchange Commission (SEC) last month.
According to a recent Reuters report, spot Ethereum ETFs might receive final approval by July 4, pending discussions between investment firms and regulators.
Speaking at a Bloomberg conference on June 25, SEC Chair Gary Gensler expressed optimism about the approval process, highlighting ongoing discussions between asset managers and the necessity for comprehensive disclosure in their registration statements, crucial for ETF approval.