Bitcoin ETFs See Continued Inflows as BTC Stabilizes Above $60K

Bitcoin ETFs See Continued Inflows as BTC Stabilizes Above $60K

Positive Net Inflows for Spot Bitcoin ETFs Persist for a Second Day

For the second consecutive day, spot Bitcoin exchange-traded funds (ETFs) in the United States have reported positive net inflows. On Wednesday, these ETFs saw $21.52 million in net inflows, building on a trend that began on Tuesday.

Fidelity’s FBTC Leads with Significant Inflows

According to data from SoSoValue, Fidelity’s FBTC was the standout performer, attracting $19 million in net inflows. This marked the largest single-day inflow among spot Bitcoin ETFs.

Grayscale’s GBTC and VanEck Also See Positive Flows

Grayscale’s GBTC recorded net inflows of $4 million, its first positive movement since June 5. VanEck followed with $3 million in net inflows on the same day.

Mixed Results for Other ETFs

Not all funds experienced positive inflows. Ark Invest and 21Shares’ ARKB recorded net outflows totaling $5 million. Meanwhile, other major funds, including those from BlackRock, Bitwise, and Valkyrie, saw no net inflows during this period.

Cumulative Inflows Highlight Growing Popularity

Since their introduction in January, spot Bitcoin ETFs have amassed a cumulative total of $14.44 billion in net inflows, indicating a rising interest in these investment vehicles.

Bitcoin Price Holds Steady Above $60,000

Despite some fluctuations, Bitcoin has managed to maintain its value above the $60,000 mark. After hitting a low of $59,021.42 on Monday, BTC was trading at $60,633 at the time of writing, reflecting a 1.5% decrease over the past day and nearly an 11% decline over the past week.

Market Trends and Analysis

CryptoQuant has suggested that Bitcoin’s lack of bullish momentum could see it slide back to the $60,000 level after breaching the key support of $65,800. On-chain data indicates that traders have been reducing their holdings since Bitcoin reached $70,000 in late May and have not yet resumed buying.

For the month, Bitcoin has seen a nearly 10% decline. After briefly reaching $71,000 at the start of June, it has been on a steady downward trajectory. Since mid-March, Bitcoin has largely traded within the narrow range of $60,000 to $70,000, following its all-time high of $73,797.68.

Digital Asset Products Experience Continued Outflows

CoinShares, a crypto-focused asset manager, reported that digital asset investment products experienced outflows for the second consecutive week, totaling $584 million. Investor pessimism 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.

Anticipation of Spot Ether ETFs

In other developments, U.S. issuers are actively working towards launching spot ether ETFs following a soft approval from the Securities and Exchange Commission (SEC) last month. According to a recent Reuters report, the SEC might approve spot Ethereum ETFs by July 4, pending the finalization of discussions between investment firms and regulators.

At a Bloomberg conference on June 25, SEC Chair Gary Gensler indicated that the approval process is progressing smoothly. He emphasized the need for asset managers to provide full disclosure in their registration statements, which is a prerequisite for ETF approval.

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