Fund flow in the U.S. Bitcoin spot exchange-traded fund (ETF) market changed from a net outflow to a net inflow in just 7 business days. It appears that many investors participated in the purchase as the price recovered after the sharp drop.
What's New: According to data from asset management company Farside, there was a net inflow of about $31 million in the U.S. Bitcoin spot ETF market on the 25th (local time). The net outflow streak of 7 consecutive business days from the 13th to the 24th has come to an end.
The top net inflow was the Fidelity Bitcoin Spot ETF (FBTC) with $48.8 million. Second place went to Bitwise Bitcoin Spot ETF (BITB) with $15.2 million inflow, and third place went to VanEck Bitcoin Spot ETF (HODL) with $3.5 million inflow. The largest net outflow was the Grayscale Bitcoin Spot ETF (GBTC), with $30.3 million out.
BlackRock Bitcoin Spot ETF (IBIT), which ranks first in Bitcoin holdings, recorded no net outflow or net inflow for the third day today.
Background of the issue: Although net outflow from the Bitcoin spot ETF market has continued, the net outflow has been decreasing. However, on the 24th, the large exchange Mt. Gox, which went bankrupt, announced that it plans to pay a large amount of cryptocurrency to creditors in early July, causing another price plunge.
What is interesting is that even though the Bitcoin price fell by nearly 4.6% on this day, the net outflow was a relatively small figure of about $174.5 million. The main reason is that the Bitcoin price range has fallen from the $70,000 range to the $60,000 range due to the price decline that has continued for more than a week.
Important point: It is positive that there was a net inflow into the US Bitcoin spot ETF market on the 25th. However, it is difficult to say that the net inflow of $31 million is of great significance in light of the scale of fund flows so far.
Another unique thing is that IBIT's trading volume on this day was close to $1.1 billion. $1.1 billion is more than the average daily trading volume on IBIT over the past week. Nevertheless, the net inflow was $0. This means that there may be supply and demand factors that investors cannot confirm.
What happens next: The U.S. Bitcoin spot ETF recorded net inflows worth about $14.414 billion as of the 25th after launch. From the net inflow of $15.6 billion in early June, $1.2 billion went out again in about a month. If there is no momentum to restore investment sentiment, further outflow is possible given the trend.
The market expects that the Ethereum spot ETF, which is expected to be approved by the U.S. Securities and Exchange Commission (SEC) next week, will serve as a catalyst for this momentum. As of 7 PM on the 26th, the price of Bitcoin is hovering around the $61,320 level, down 0.77% from the previous day.
