US Bitcoin ETFs witnessed a net outflow of $20.45 million on Wednesday, with only Grayscale’s GBTC and Fidelity’s FBTC showing activity. Trading volume for the 11 funds dropped to around $800 million on July 3rd, a significant decrease from the $8-$10 billion daily volume in March. However, the ETFs have attracted a total of $14.62 billion in net inflows since their launch in January.

Despite a positive start to July with the largest daily influx in almost a month, the recent dull flows have dampened investor hopes. Bitcoin's price dropped to $56,770, a level last seen in February, following Germany's government's move of another batch of confiscated Bitcoin tokens.

However, Bitfinex’s Head of Derivatives, Jag Kooner, suggested that Bitcoin ETF flows might see an uptick if market participants believe that economic uncertainty will drive the Fed towards eventual rate cuts, enhancing the appeal of Bitcoin as an inflation hedge.