**Bitcoin Struggles Despite ETF Inflows**

Since July 5, Bitcoin (BTC) has seen a net inflow of $1.91 billion into its US spot exchange-traded funds (ETFs). Yet, its price has struggled to stay above $65,000. Interestingly, this underperformance isn't tied to traditional finance markets, as the S&P 500 and gold have hit record highs.

Key points:

- Spot ETF buyers might be shifting positions for tax reasons or using shares as collateral.

- Hedge funds like Millennium Management and Jane Street are engaging in arbitrage trades, not betting on BTC's price.

- CME Bitcoin futures open interest has surged, indicating a neutral market impact from ETF inflows.

Additionally, US inflation is dropping, and Treasury yields are falling, suggesting confidence in the Federal Reserve's strategy. This trend is unfavorable for Bitcoin, as positive macroeconomic data weakens its appeal as an alternative store of value.

This article does not contain investment advice. Always conduct your own research before making investment decisions.