Bitcoin ETFs See $342.2 Million Outflow After 15-Day Inflow Streak

On July 1st, the continuous net inflow streak of U.S.-based spot Bitcoin ETFs, which amounted to $4.7 billion over 15 days, came to a halt with a net outflow of $342.2 million. BlackRock’s prominent IBIT fund, previously receiving a $3.8 billion inflow, reported zero activity. Fidelity’s FBTC led the withdrawals with $172.7 million, followed by Grayscale’s GBTC with $119.5 million, Ark Invest’s ARKB with $27 million, and Bitwise’s BITB with $23 million. BRN Chief Research Analyst Valentin Fournier emphasized that while these outflows indicate a pause in institutional accumulation, they do not signal a shift in the trend.

Since their launch in January 2024, U.S. spot Bitcoin ETFs have attracted net inflows totaling $48.63 billion, reaching a size of $128 billion. However, the strong inflow momentum observed over the last 15 days has slowed with weakening daily inflows, eventually reversing. Fournier noted that short-term investor interest has cooled and without new catalysts, Bitcoin is unlikely to surpass $110,000.

Despite the $119.5 million outflow from GBTC, the fund still manages one of the largest asset pools. IBIT’s cessation of flows indicates a cautious phase for the traditionally leading fund. Analysts attribute this shift in ETFs to increasing interest rate uncertainty and upcoming macroeconomic data, resulting in a temporary decline in risk appetite.

On July 1st, Bitcoin fell below the $105,500 threshold but quickly rebounded to approximately $107,800. Vincent Liu, Kronos Research CIO, mentioned that until unemployment claims and other U.S. economic indicators are clarified, a cautious market outlook will persist. The range of $105,000-$110,000 is viewed as a consolidation band providing healthy potential for upward movement.

Meanwhile, on Tuesday, spot Ethereum ETFs in the U.S., launched in July 2024, recorded a net inflow of $40.7 million. BlackRock’s ETHA fund alone attracted $54.8 million. Consequently, the total net inflow for Ethereum-based investment products over three days reached $150 million, with cumulative net inflows since launch amounting to $4.3 billion.

Market experts suggest that the pause in Bitcoin may support short-term institutional interest in Ethereum. The trend highlights a growing interest in Ethereum, which has seen a steady inflow of capital into its spot ETFs for the seventh consecutive week. This regulatory approval has facilitated a significant rebound in Ethereum's price, rising from $2,200 to $2,500. The continuous inflows into Ethereum spot ETFs indicate that institutional investors remain confident in the cryptocurrency's long-term prospects, despite short-term price fluctuations.

The US Securities and Exchange Commission approved spot ETFs for Ethereum in mid-2024, following the approval of Bitcoin spot ETFs earlier in the year. This regulatory green light has facilitated a steady inflow of capital into Ethereum spot ETFs, with a notable rebound in Ethereum's price from $2,200 to $2,500. The influx of capital indicates a strong institutional appetite for Ethereum, driven by its price recovery and the convenience of ETF investments. Bitcoin, the leading cryptocurrency, has also experienced a surge in demand, with a net inflow of around 15,000 BTC into US spot ETFs during the latest week. This translates to approximately $1.6 billion in USD terms, significantly higher than the $258.6 million inflows for Ethereum. While both cryptocurrencies have seen increased demand, the scale of investment in Bitcoin remains larger. The trend for Bitcoin spot ETFs shows an acceleration of demand in June, although it is uncertain whether this momentum will continue into July.

Despite Ethereum's recent price pullback to $2,400, the overall trend suggests a sideways movement in the last few days. The continuous inflows into Ethereum spot ETFs indicate that institutional investors are confident in the cryptocurrency's long-term prospects, despite short-term price fluctuations. This sustained interest underscores the growing acceptance of Ethereum as a viable investment option within traditional financial markets. Analysts cite decreasing trading volumes and short-term profit-taking as factors dampening the upward momentum. The trend for Bitcoin spot ETFs shows an acceleration of demand in June, although it is uncertain whether this momentum will continue into July. The continuous inflows into Ethereum spot ETFs indicate that institutional investors are confident in the cryptocurrency's long-term prospects, despite short-term price fluctuations. This sustained interest underscores the growing acceptance of Ethereum as a viable investment option within traditional financial markets.