US Spot Bitcoin ETFs Record Net Inflows: Is Bitcoin Bottoming?

US Spot Bitcoin ETFs Record Net Inflows: Is Bitcoin Bottoming?

The spot Bitcoin ETFs have finally reversed course after seven days of sharp outflows, recording $31 million in net inflows on Tuesday, June 25. Fidelity FBTC counteracted the net withdrawals from the Grayscale GBTC by bringing in $48.8 million. This news has caused the price of Bitcoin to rise sharply, surpassing $62,000.

Inflows Into US Spot Bitcoin ETFs: A Dead Cat Bounce?

Despite turning positive, net inflows are still relatively minor compared to the weekly outflows of Bitcoin ETFs that have been observed. Additionally, there were no inflows into BlackRock’s IBIT on Tuesday, indicating a decline in interest from their institutional clientele.

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One encouraging aspect is that yesterday’s trading volumes for the spot Bitcoin ETFs were robust, with a 4-5% increase for each ETF provider. While trading volumes for Proshares BITO, Grayscale’s GBTC, and Fidelity’s FBTC recorded more than $300 million, BlackRock’s IBIT trading volumes soared beyond $1 billion.

JUST IN: BlackRock’s spot #Bitcoin ETF did $1.1 billion in trading volume today 👀

— Bitcoin Magazine (@BitcoinMagazine) June 25, 2024

As investors have been monitoring significant macro changes in the market, inflows have slowed after a high Q1 demand for the spot Bitcoin ETFs. Given the robust job market, the Federal Reserve has indicated that it intends to keep interest rates higher for longer than anticipated. As a result, investors have lowered their forecasts to only one rate drop by the end of 2024.

Demand for BTC ETFs Is Healthy in Australia and Hong Kong

The Hong Kong Bitcoin ETFs have had solid inflows despite the focus being primarily on the US market for spot Bitcoin ETFs. Hong Kong’s Bitcoin ETFs have embraced the “buy the dip” tactic. It demonstrates unequivocally that institutional investors in Hong Kong are still optimistic despite the market’s current sell-off in Bitcoin prices.

In the same vein, Australia’s monochromatic Bitcoin ETF has kept accumulating modest amounts of Bitcoins throughout the entire current price decline.

Has the Price of Bitcoin Peaked?

The price of Bitcoin has recovered from its low of $58,000 late on Monday and is currently trading at about $61,700 as of this writing. Until another panic trigger occurs in the market, there is no compelling reason to correct further as long as the price of Bitcoin remains above $60,000.

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