According to CoinNess, on Wednesday, the net outflow of the US spot Bitcoin ETF was $20.45 million. Interestingly, only two companies showed active performance in the uncertain market. Grayscale’s GBTC withdrew $26.99 million, while Fidelity’s FBTC gained $6.55 million. The remaining nine funds, including BlackRock’s IBIT, Bitwise’s BITB, and VanEck’s HODL, did not report any fund flows. The market momentum of US Bitcoin exchange-traded funds weakened. According to data compiled by SoSoValue, on July 3, the trading volume of these 11 funds reached approximately $800 million, lower than the previous day’s $995 million. This means a significant decrease compared to March when the daily trading volume was between $8 billion and $10 billion. Despite recent fluctuations, since its launch in January, ETFs have attracted a net inflow of $14.62 billion. The US spot Bitcoin ETF had a positive start in July, with a record high inflow on the first day, totaling $129 million. This is consistent with historical patterns, indicating that Bitcoin typically shows an upward trend at the beginning of July. The new influx of funds is a positive sign after experiencing significant outflows in a turbulent June for Bitcoin exchange-traded funds. However, the subsequent weak fund flow has dashed investors’ hopes. July has historically been a stronger month for the world’s largest digital asset, but the first week has been full of turbulence. Bitcoin fell to $56,770, the last time it reached this level was in February. The recent price drop occurred after the German government transferred another batch of seized Bitcoin tokens. According to Arkham Intelligence, approximately $76 million worth of Bitcoin, equivalent to around 1,300 Bitcoins, was sent to three major exchanges – Kraken, Bitstamp, and Coinbase. Additionally, Bitcoin worth $99 million was transferred to a separate address, 139Po. Furthermore, whales have started selling again. On July 4th, blockchain monitoring platform Spotonchain observed the transfer of 1,700 Bitcoins worth over $99 million to Binance. This activity indicates that these entities are taking profits. Moreover, the timing of this move following the recent price drop of Bitcoin suggests that it may be a risk mitigation strategy aimed at reducing their Bitcoin holdings. Is there an increase in Bitcoin ETF flows? Despite the gloomy outlook, there could be an increase in the flow of Bitcoin ETFs. Jag Kooner, the derivatives director at Bitfinex, stated in a statement to CryptoPotato that if market participants believe that “economic uncertainty will drive the Fed to eventually cut interest rates, enhancing Bitcoin’s attractiveness as an inflation hedge,” the influx of ETFs may increase. “However, the influx of significant funds will depend on broader market sentiment and risk appetite. However, currently, the fund flows we have recently seen have been quite sluggish, lacking ‘buying on the dip’.”
