Spot Bitcoin ETFs Attract $129 Million in Inflows Amid Market Optimism

Spot Bitcoin exchange-traded funds (ETFs) experienced a surge of $129.45 million in net inflows, continuing a five-day streak of positive gains. This marks the highest level of inflows since June 7, as per data from SosoValue. Fidelity’s FBTC led the pack, attracting $65 million in investments.

Bitwise’s BITB followed with $41 million, while Ark Invest and 21Shares’ ARKB reported $13 million in net inflows. Smaller inflows were noted for Invesco, Galaxy Digital, VanEck, and Franklin Templeton, each ranging from around $5 million to slightly below.

Interestingly, the largest spot Bitcoin ETFs by net asset value, BlackRock’s IBIT and Grayscale’s GBTC, did not see any activity on Monday. In total, these 11 Bitcoin funds generated approximately $1.36 billion in trading volume. Since their inception in January, these ETFs have accumulated a total net inflow of $14.65 billion.

Digital Asset Investment Products See Mixed Performance

While Bitcoin ETFs enjoyed positive inflows, digital asset investment products as a whole faced outflows for the third consecutive week, totaling $30 million. However, the rate of outflows has decreased compared to previous weeks, according to a CoinShares report. Most providers saw minor inflows, except for Grayscale, which reported outflows of $153 million.

Despite these outflows, trading volumes for digital asset investment products rose by 43% week-on-week to $6.2 billion, although this remains below the average weekly volume of $14.2 billion for the year. Geographically, the United States, Brazil, and Australia reported inflows of $43 million, $7.6 million, and $3 million, respectively. Conversely, Germany, Hong Kong, Canada, and Switzerland experienced outflows of $29 million, $23 million, $14 million, and $13 million, respectively.

Ethereum saw significant outflows, totaling $61 million for the past week, marking its largest outflows since August 2022. This brings Ethereum’s total outflows to $119 million over the last two weeks, making it the worst-performing asset in terms of net flows year-to-date. Conversely, multi-asset and Bitcoin ETPs saw inflows of $18 million and $10 million, respectively. Short-bitcoin ETPs experienced outflows of $4.2 million, suggesting a potential shift in market sentiment. Notably, several altcoins, including Solana and Litecoin, recorded substantial inflows.

Bullish Sentiment for Bitcoin in July

Analysts from QCP Capital remain optimistic about Bitcoin’s performance in July, citing historical data that suggests 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 Telegram post.

The analysts noted that their options desk observed positioning for an upside move in anticipation of the ETH spot ETF launch. “Many signs point to a bullish July,” they added. One potential trading strategy mentioned is a BTC Accumulator with an expiry of September 20, 2024, lasting for 12 weeks. This strategy involves buying BTC below the $60,000 mark, leveraging the false break of that level, and capitalizing on the anticipated bullish momentum. The strike price for this trade is set at $59,000, with a barrier at $71,000, indicating that the trade will be capped if BTC surpasses that threshold.

In conclusion, the recent inflows into spot Bitcoin ETFs, combined with optimistic forecasts and strategic trading positions, suggest a positive outlook for Bitcoin in the coming months.