As the price of Bitcoin rebounded to the $66,000 level, the inflow of funds into the U.S. Bitcoin spot exchange-traded fund (ETF) market showed a slowdown. There is a clear difference in temperature compared to the recent inflow of more than $300 million for three consecutive days.
What's new: According to data from asset management company Farside, a total of $53.3 million was net inflow into the Bitcoin spot ETF on July 17 (local time).
After the new crash on July 4th and 5th, Bitcoin buying trend revived in earnest, and about $2 billion worth of funds flowed into the ETF market by the 17th. $53.3 million is the lowest daily inflow during this period.
What is encouraging is that the largest BlackRock Bitcoin spot ETF (IBIT) showed an inflow of more than $100 million on this day. With an inflow of $110.4 million on this day, IBIT currently holds $18.7495 billion worth of Bitcoin. BlackRock raised funds worth $1.0103 billion during the post-crash recovery process alone.
Except for IBIT, net inflow performance was poor. Second place went to the Fidelity Bitcoin Spot ETF (FBTC), with an inflow of $2.8 million. These were the only two places that recorded net inflow. There was a net outflow of $53.9 million from the Grayscale Bitcoin Spot ETF (GBTC) on this day.
Could there be a further rebound: Bitcoin price fell to the $53,000 level on July 5th. Afterwards, it rose to the $66,000 level at one point on July 17th. It is a rebound of about 24.5% in 12 days.
There are mixed expectations in the market as to how long this upward trend will continue. Looking at futures positions on derivatives exchanges mainly traded by institutional investors, such as the Chicago Mercantile Exchange (CME), further increases are weighted. Futures premiums are also on the rise. However, looking at the funding ratio of cryptocurrency exchanges, there are more investors taking short positions.
What happens next: Given that the price rebound has been driven by overwhelming buying in the ETF market, the decline in net inflows is likely to act as an obstacle to further price rises.
However, it seems unlikely that the price will go down again. This is because favorable issues are scheduled to continue next week. On the 23rd (local time), former President Donald Trump, the US Republican presidential candidate, is scheduled to attend the Bitcoin conference and deliver a keynote speech. In addition, eight Ethereum spot ETF products will be launched in the U.S. market on this day.
