Crypto Outflows Continue as Bitcoin ETFs See Surge in Inflows
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The crypto market is showing some interesting trends this week. We’re seeing a mix of crypto outflows from some areas and inflows into others.
For the third week in a row, digital asset investment products have seen money leave, according to the latest weekly report from CoinShares. This time, about $30 million took flight from these funds.
But it’s not all bad news. The report shows that outflows are slowing down compared to previous weeks.
Crypto Outflows: Ethereum Suffers Worst Outflow in Almost 2 Years
Ethereum, the second-largest cryptocurrency, is having a tough time. It saw its biggest outflows since August 2022 just last week. In just one week, $61 million left Ethereum funds.
With this, Ethereum-related outflows have ballooned to $119 million in the past two weeks. This makes Ethereum the worst-performing asset so far this year in terms of money flow.
But while some areas are losing money, others are gaining. Multi-asset funds and Bitcoin ETPs (exchange-traded products) are seeing money come in. They got $18 million and $10 million, respectively, last week.
Bitcoin ETFs Record Notable Uptick in Inflows
Speaking of Bitcoin, there’s some exciting news from the U.S. The spot Bitcoin ETFs there just had their best day in three weeks. On Monday, these funds saw $129.5 million in net inflows. This marks five days in a row of positive flows for these ETFs and the first net inflows across all ETFs since June 13.
Fidelity’s FBTC led the pack, bringing in $65 million. Bitwise’s BITB wasn’t far behind with $41 million. Other funds, like those from Ark Invest, 21Shares, Invesco, and Galaxy Digital, also saw money coming in.
It’s worth noting that the two largest spot Bitcoin ETFs, BlackRock’s IBIT and Grayscale’s GBTC, didn’t see any flows on Monday. But overall, these 11 Bitcoin funds have brought in a total of $14.65 billion since they launched in January. The trading volume for these ETFs was also high on Monday, reaching about $1.36 billion.
Despite all this activity, Bitcoin’s price has dipped slightly. It’s now around $61,928, down 1.45% in the past day, as of the time of writing. This is a recovery from last week, when it briefly dropped below $60,000, but it’s still well below its early June high of just under $72,000.
Some experts think July could be a good month for both Bitcoin and Ethereum. They’ve noticed that these cryptocurrencies often do well in July, based on past trends. And the data backs this up, just as you can see in the chart below.
