Bitcoin Spot ETFs See Net Inflows of $31M, Breaking 7-Day Outflows Trend

Bitcoin Inflows Spot ETFs

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 26, 2024 02:25 EDT

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Bitcoin spot exchange-traded funds (ETFs) in the United States experienced a positive turnaround on Tuesday as they attracted a total net inflow of $31 million.

This marked a significant change from the seven consecutive trading days of net outflows observed in the 11 Bitcoin spot ETFs, according to data from SoSoValue.

More specifically, Fidelity’s FBTC led the net inflows on Tuesday with $49 million, followed by Bitwise’s BITB with $15 million.

VanEck’s HODL also saw net inflows of $4 million.

Grayscale’s GBTC Sees Outflows

On the flip side, Grayscale’s GBTC witnessed net outflows of $30.3 million, while Ark Invest and 21Shares’ ARKB reported $6 million in net outflows.

Although BlackRock’s IBIT, the largest spot bitcoin fund in terms of net asset value, observed zero flows, it recorded a substantial daily trade volume of $1.1 billion on Tuesday.

Similarly, other funds from Invesco, Galaxy Digital, Valkyrie, and Franklin Templeton also reported zero flows on that day.

Since their debut in January, the 11 spot bitcoin funds have accumulated a total net inflow of $14.42 billion as of Tuesday, indicating strong investor interest despite the recent outflow trend.

Meanwhile, U.S. issuers are actively working towards launching spot ether ETFs following the soft approval received from the Securities and Exchange Commission (SEC) last month.

Last week, firms filed amended S-1 registration statements, and industry experts, such as Bitwise Chief Information Officer Matt Hougan, anticipate the launch of spot Ethereum ETFs within the next week.

Hougan predicts that spot ether ETFs could accumulate around $15 billion in net inflows within the first 18 months of their U.S. launch.

Germany Starts Bitcoin Sell-Off

In other news, the German government has started selling off its confiscated Bitcoin assets.

These assets, worth approximately $3 billion, were seized from the movie piracy website Movie2k.to in 2020.

The German government has already sold around $325 million worth of Bitcoin last week, with the possibility of further sales in the future.

More recently, the German government transferred 200 BTC to Coinbase, while the same wallet also moved 200 BTC to Kraken.

🔔 Breaking News: The German government has just transferred 200 BTC to Coinbase. Simultaneously, this wallet also moved 200 BTC to Kraken. This could lead to significant market fluctuations! 🚀📉#Bitcoin #CryptoNews #MarketUpdate #BTC #Germany pic.twitter.com/ImCwX3fHoT

— BoKuBu (@atrungbs87) June 25, 2024

Additionally, the impending distribution of Bitcoin owed to former customers of the now-defunct cryptocurrency exchange Mt. Gox could impact the market.

This distribution may involve up to 140,000 BTC entering the market, potentially valued at up to $9 billion.

While concerns have been raised about the selling pressure caused by this influx, some argue that the impact might be overstated.

Creditors have had several years to sell their claims if they required immediate funds, which could help mitigate any potential negative effects on prices.

Meanwhile, digital asset investment products, as a whole, experienced a second consecutive week of outflows, amounting to $584 million.

The pessimism among investors regarding potential interest rate cuts by the Federal Reserve is believed to be a contributing factor.

Last week also saw the lowest trading volumes on ETPs globally since the launch of U.S. ETFs in January, with a total of just $6.9 billion traded throughout the week.