Bitcoin ETFs See Inflows for Second Consecutive Day as BTC Holds Steady at $60K

Spot Bitcoin exchange-traded funds (ETFs) in the United States have experienced positive net inflows for the second consecutive day.

On Wednesday, spot Bitcoin ETFs reported $21.52 million in net inflows, continuing a positive streak that began on Tuesday.

According to data from SoSoValue, the largest net inflows of the day came from Fidelity’s FBTC, which attracted $19 million.

Grayscale’s GBTC Sees Inflows

Grayscale’s GBTC also saw net inflows of $4 million, marking its first positive flow since June 5. Additionally, VanEck recorded $3 million worth of inflows on Wednesday.

However, not all funds experienced positive flows.

Ark Invest and 21Shares’ ARKB were the only ones to record net outflows, totaling $5 million. Other funds, including BlackRock, Bitwise, and Valkyrie, saw no net flows during this period.

Since their debut in January, spot Bitcoin ETFs have amassed a cumulative total of $14.44 billion in net inflows, highlighting the growing popularity of these investment vehicles.

Meanwhile, the price of Bitcoin, which reached as low as $59,021.42 on Monday for the first time since May 3, managed to hold key level above the $60,000 mark.

At the time of writing, BTC is trading at $60,633, down by 1.5% over the past day. Over the past week, the leading cryptocurrency has fallen by nearly 11%.

Last week, CryptoQuant suggested that Bitcoin’s lack of bullish momentum could cause it to slide back to the $60,000 level after breaking below the key support of $65,800.

The on-chain data indicated that traders have been reducing their holdings since Bitcoin touched $70,000 in late May and have not yet resumed buying.

#Bitcoin is trading below the critical support level of $65.8K, now below $64K.

Falling under this threshold suggests a potential 8%-12% correction toward $60K. pic.twitter.com/hXwUkC13up

— CryptoQuant.com (@cryptoquant_com) June 21, 2024

For the month, Bitcoin has declined by nearly 10%.

Although it briefly reached the $71,000 level at the beginning of June, it has since been on a steady decline.

Since mid-March, Bitcoin has mostly traded within the narrow range of $60,000 to $70,000 after reaching its all-time high of $73,797.68.

Digital Asset Products See $584M in Outflows for the Week

CoinShares, a crypto-focused asset manager, revealed that crypto investment products experienced a second consecutive week of outflows.

More specifically, digital asset investment products, as a whole, experienced a second consecutive week of outflows, amounting to $584 million.

The pessimism among investors regarding potential interest rate cuts by the Federal Reserve is believed to be a contributing factor.

Last week also saw the lowest trading volumes on ETPs globally since the launch of U.S. ETFs in January, with a total of just $6.9 billion traded throughout the week.

Meanwhile, U.S. issuers are actively working towards launching spot ether ETFs following the soft approval received from the Securities and Exchange Commission (SEC) last month.

According to a recent report from Reuters, the SEC might greenlight spot Ethereum ETFs by July 4 if discussions between investment firms and regulators are finalized.

At a Bloomberg conference on June 25, SEC Chair Gary Gensler said the approval progress is “going smoothly.”

He also stressed the necessity for asset managers to provide full disclosure in their registration statements, which is required for the ETFs to be approved.