Spot Bitcoin ETFs See $129M in Inflows, Largest in Almost a Month

Spot Bitcoin exchange-traded funds (ETFs) saw $129.45 million in daily net inflows on Monday, marking the fifth consecutive day of positive flows for these funds.

The tally also marks the highest level of fund intake since June 7, according to data from SosoValue.

Leading the inflows on Monday was Fidelity’s FBTC, which attracted $65 million in investments.

Bitwise’s BITB followed closely with $41 million in net inflows, while Ark Invest and 21Shares’ ARKB reported $13 million in net inflows.

Invesco, Galaxy Digital, VanEck, and Franklin Templeton also saw relatively minor inflows, ranging from around $5 million to below $5 million.

However, the two largest spot Bitcoin ETFs in terms of net asset value, BlackRock’s IBIT and Grayscale’s GBTC, did not witness any flows on Monday.

These 11 Bitcoin funds collectively generated approximately $1.36 billion in trading volume on Monday.

Since their inception in January, the ETFs have amassed a total net inflow of $14.65 billion.

Bitcoin spot ETFs had a total net inflow of $129 million on July 1, continuing a net inflow for 5 consecutive days. Fidelity ETF FBTC had a single-day inflow of $65.034 million, and Bitwise ETF BITB had a single-day inflow of $41.4022 million. https://t.co/Yanotfbotb

— Wu Blockchain (@WuBlockchain) July 2, 2024

Digital Asset Investment Products See Outflows in Last Week

On the other hand, digital asset investment products as a whole experienced outflows for the third consecutive week, amounting to $30 million.

However, the rate of outflows significantly decreased compared to previous weeks, CoinShares said in a recent report.

While most providers saw minor inflows, Grayscale reported outflows of $153 million.

Trading volumes for digital asset investment products rose by 43% week-on-week, reaching $6.2 billion, although they still remain below the average weekly volume of $14.2 billion so far this year.

Geographically, the United States, Brazil, and Australia all experienced inflows of $43 million, $7.6 million, and $3 million, respectively.

Conversely, Germany, Hong Kong, Canada, and Switzerland saw outflows of $29 million, $23 million, $14 million, and $13 million, respectively.

Interestingly, Ethereum witnessed its largest outflows since August 2022, totaling $61 million in the past week.

This brings the total outflows for the last two weeks to $119 million, making Ethereum the worst-performing asset in terms of net flows year-to-date.

Meanwhile, multi-asset and Bitcoin exchange-traded products (ETPs) saw inflows of $18 million and $10 million, respectively. Short-bitcoin ETPs also experienced outflows of $4.2 million, indicating a potential shift in sentiment.

Additionally, several altcoins, including Solana and Litecoin, saw notable inflows.

Analysts Bullish on Bitcoin in July

Analysts from QCP Capital suggest that both Bitcoin and Ether historically perform well in July due to positive seasonality.

“Looking at seasonality, BTC has a median return of 9.6% in July and tends to bounce back strongly especially after a negative June (-9.85%),” they wrote in a recent post on Telegram.

“Our options desk also saw flows positioning for an upside move last Friday into the month-end, possibly in anticipation of the ETH spot ETF launch. Many signs point to a bullish July.”

QCP added that one potential trade idea is to consider a BTC Accumulator with an expiry of 20SEP24, lasting for 12 weeks.

This strategy involves buying BTC below the $60,000 mark, taking advantage of the false break of that level, and benefiting from the bullish momentum expected in the coming month.

The strike price for this trade is set at $59,000. However, there is a barrier at $71,000, indicating that the trade will be capped if BTC surpasses that threshold.