Spot Bitcoin exchange-traded funds (ETFs) saw significant activity with $129.45 million in daily net inflows on Monday, marking the fifth consecutive day of positive flows. This influx represents the highest level of fund intake since June 7, according to data from SosoValue.
Leading Inflows
Fidelity’s FBTC led the inflows on Monday, attracting $65 million in investments. Bitwise’s BITB followed closely with $41 million in net inflows, while Ark Invest and 21Shares’ ARKB reported $13 million in net inflows. Other ETFs, including those from Invesco, Galaxy Digital, VanEck, and Franklin Templeton, saw relatively minor inflows ranging from around $5 million to below $5 million.
However, the two largest spot Bitcoin ETFs by net asset value, BlackRock’s IBIT and Grayscale’s GBTC, did not witness any inflows on Monday. Overall, these 11 Bitcoin funds collectively generated approximately $1.36 billion in trading volume on Monday. Since their inception in January, these ETFs have amassed a total net inflow of $14.65 billion.
Digital Asset Investment Products See Outflows
In contrast, digital asset investment products as a whole experienced outflows for the third consecutive week, amounting to $30 million. However, the rate of outflows significantly decreased compared to previous weeks, according to a recent report from CoinShares.
Most providers saw minor inflows, but Grayscale reported substantial outflows of $153 million. Trading volumes for digital asset investment products rose by 43% week-on-week, reaching $6.2 billion, although they remain below the average weekly volume of $14.2 billion so far this year.
Geographical Inflows and Outflows
Geographically, the United States, Brazil, and Australia saw inflows of $43 million, $7.6 million, and $3 million, respectively. Conversely, Germany, Hong Kong, Canada, and Switzerland experienced outflows of $29 million, $23 million, $14 million, and $13 million, respectively.
Ethereum's Significant Outflows
Ethereum witnessed its largest outflows since August 2022, totaling $61 million in the past week. This brings the total outflows for the last two weeks to $119 million, making Ethereum the worst-performing asset in terms of net flows year-to-date.
Other Asset Movements
Multi-asset and Bitcoin exchange-traded products (ETPs) saw inflows of $18 million and $10 million, respectively. Short-bitcoin ETPs experienced outflows of $4.2 million, indicating a potential shift in sentiment. Additionally, several altcoins, including Solana and Litecoin, saw notable inflows.
Analysts Bullish on Bitcoin in July
Analysts from QCP Capital suggest that both Bitcoin and Ether historically perform well in July due to positive seasonality. “Looking at seasonality, BTC has a median return of 9.6% in July and tends to bounce back strongly especially after a negative June (-9.85%),” they wrote in a recent post on Telegram.
“Our options desk also saw flows positioning for an upside move last Friday into the month-end, possibly in anticipation of the ETH spot ETF launch. Many signs point to a bullish July.”
Potential Trade Strategy
QCP Capital added that one potential trade idea is to consider a BTC Accumulator with an expiry of September 20, 2024, lasting for 12 weeks. This strategy involves buying BTC below the $60,000 mark, taking advantage of the false break of that level, and benefiting from the expected bullish momentum in the coming month. The strike price for this trade is set at $59,000, with a barrier at $71,000, indicating the trade will be capped if BTC surpasses that threshold.
In summary, while spot Bitcoin ETFs are seeing significant inflows, the broader digital asset market continues to experience outflows. However, analysts remain optimistic about Bitcoin's performance in July, supported by positive seasonality and anticipated institutional interest.
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