Bitcoin ETFs in the US Experience $20.45M Withdrawal as Nine Funds Hold Steady
The US spot Bitcoin ETFs saw a net outflow of $20.45 million on Wednesday, with only two funds showing activity amidst market uncertainty. Grayscale’s GBTC experienced a $26.99 million exit, while Fidelity’s FBTC gained $6.55 million. The other nine funds, including BlackRock’s IBIT, Bitwise’s BITB, and VanEck’s HODL, did not report any flows.
Data compiled by SoSoValue revealed that trading volume for these 11 funds reached approximately $800 million on July 3rd, down from $995 million the day before. This marked a significant decrease from March when daily volume ranged from $8-$10 billion. Despite recent fluctuations, the ETFs have attracted a total of $14.62 billion in net inflows since their launch in January.
US spot Bitcoin ETFs started July on a positive note, recording their largest daily influx in nearly a month on the first day, totaling $129 million. This trend aligns with historical patterns showing that Bitcoin often begins July with an upward trajectory. The fresh inflows provided a positive signal following a turbulent June that saw Bitcoin ETFs facing losses.
However, subsequent flows have been lackluster, dampening investor optimism. While July historically tends to be a strong month for the largest digital asset globally, the first week has been notably turbulent, with Bitcoin dropping to $56,770, a level last observed in February.
The recent price decline followed Germany’s government transferring another batch of confiscated Bitcoin tokens. Arkham Intelligence reported that approximately $1,300 BTC, valued at nearly $76 million, was sent to major exchanges such as Kraken, Bitstamp, and Coinbase. An additional $99 million worth of Bitcoin was moved to a separate address known as 139Po.
Furthermore, there has been a resurgence in whale selling activity. On July 4th, Spotonchain, an on-chain monitoring platform, detected a transfer of 1,700 BTC worth over $99 million to Binance. This selling behavior suggests profit-taking by these entities, possibly as a risk mitigation strategy to reduce their Bitcoin holdings following the recent price drop.
Despite the current challenges, there is potential for an increase in Bitcoin ETF flows. Bitfinex’s Head of Derivatives, Jag Kooner, mentioned that if market participants anticipate economic uncertainty leading to potential rate cuts by the Federal Reserve, the appeal of Bitcoin as an inflation hedge could rise, potentially driving ETF inflows. However, broader market sentiment and risk appetite will play a crucial role in determining significant inflows, which have been subdued recently, lacking significant buying during price dips.
