Analyzing The Bitcoin ETF Net Flow for July

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As an experienced analyst, I have closely monitored the Bitcoin ETF market and its impact on the cryptocurrency industry. The approval and subsequent launch of the Bitcoin ETF was a significant milestone for investors, providing easier access to this digital asset class through traditional financial vehicles.

This month has seen significant progress for the Bitcoin ETF, from navigating market downturns to fueling a surge in interest. Exchange-traded funds (ETFs), including those based on Bitcoin, are currently generating buzz among investors due to the introduction of new options. Despite the lengthy process leading up to its approval, the Bitcoin ETF’s launch proved worthwhile with increased demand following its debut.

Over time, this development has facilitated the entry of various altcoins into the ETF market. The application processes for Ethereum and Solana ETFs are currently underway, with more to come shortly.

Bitcoin ETF Net Flows Wild Ride

The month of June stood out among the others for its chaos, with the last week being particularly chaotic. Throughout this period, the financial losses were not just continuous but also substantial, causing alarm and doubt about what’s to come.

Starting from early July, there were noticeable shifts taking place. The Bitcoin ETF saw relatively small inflows during the initial days, with $21 million and $12 million recorded on the first and second days respectively. However, a significant increase was observed starting from the third day, with net flows of approximately $73 million and $129 million on the third and fourth days respectively.

As an analyst, I’ve noticed that during this period, outflows were significantly higher than usual, with a net loss of $-14M on the 5th and $-21M on the 6th. This coincided with the crypto market crash, which saw the German government selling their seized Bitcoins and Mt. Gox initiating transfers of the stolen tokens from over a decade ago.

Analyzing The Bitcoin ETF Net Flow for July

Over the past two days, investors have faced considerable challenges in the cryptocurrency market and ETFs, which experienced significant turmoil. However, selling pressure lessened, and the influx of funds into the Bitcoin ETF picked up significantly, resulting in substantial net flows thus far.

Over the past week, starting with $143 million in new investments on the 8th, followed by additional inflows of $295 million and $216 million on the 8th and 9th respectively, has significantly bolstered our figures. The subsequent three days have also seen similar trends, marking the highest weekly inflows we’ve experienced in months. Notably, Bitcoin ETFs reached a new all-time record for net inflows during this period.

Bitcoin ETF Inflows Peaked To Month’s  High

Starting from the 10th, the rate of investment into the market decelerated significantly. The net inflow on the 10th was only $147.35 million, and this was followed by a smaller inflow of $78.93 million on the 11th. However, an astonishing surge in investments occurred on June 12, with Spotonchain data indicating net inflows exceeding $310 million – a new record high since May. This impressive feat was achieved through six consecutive days of substantial investments.

The largest portion of the inflows, approximately $120 million, went to the BlackRock ETF (IBIT). The Fieldy ETF (FBTC) received the second-largest amount with around $115 million in inflows. Lastly, the Grayscale RTF GBTC experienced a net flow of roughly $23.01.

$BTC #ETF Net Inflow July 12, 2024: +$310M!
• This trading week saw a total inflow of $1.05B and no day with an outflow .
• The $310M inflow yesterday was also the highest in the past 25 trading days.
• #BlackRock (IBIT) led the leaderboard with a $120M inflow,…
— Spot On Chain (@spotonchain) July 13, 2024

This past week saw exceptionally strong performance, officially bringing in a net income of $1.05 Billion without any single day experiencing outflows.

Final Thoughts

As an analyst, I’ve observed a striking resemblance between the Bitcoin ETF’s rollercoaster ride and the price chart of Bitcoin itself. This month, Bitcoin plummeted from a peak of $633,599 on July 1 to a low of $53,905 on July 5, coinciding with negative net flows for the ETF. However, the inflows have since picked up significantly, indicating that the same trend could be expected for the token price. Currently, Bitcoin is trading at $58,059.63.

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2024-07-13 11:08