US Spot Bitcoin ETFs See Slower Inflows
US spot Bitcoin ETFs see slower inflows, raising questions about waning investor interest despite a continued positive trend in the market.
The trend for US spot Bitcoin exchange-traded funds (ETFs) remains positive, but inflows have slowed down. While these ETFs have seen net inflows for three consecutive days, the pace has decreased compared to earlier in the year, indicating that investor interest in Bitcoin (BTC) might be declining.
Data from SoSoValue shows that the 11 US spot Bitcoin ETFs gained $11.80 million in net inflows on Thursday, a drop from Tuesday’s $31 million. Despite the slower pace, these ETFs have performed well overall.
On Thursday, Bitwise’s BITB attracted $8 million in net inflows, followed by Fidelity’s FBTC with nearly $7 million. Franklin Templeton’s ETF saw its highest daily net inflow since mid-May at $3.6 million. Invesco and Galaxy Digital’s BTCO had $3 million, and Ark Invest and 21Shares’ ARKB saw $1.84 million.
Grayscale’s GBTC registered net outflows, losing $11.5 million, while BlackRock’s IBIT, the largest spot Bitcoin ETF, stayed flat for the fifth day in a row, even with a high trading volume of $520 million. VanEck, Valkyrie, WisdomTree, and Hashdex ETFs had no net inflows or outflows.
Unexpectedly, VanEck filed for a spot Solana ETF on the same day, causing the Solana token price to jump by about 10%.
The total daily trading volume for the 11 Bitcoin ETFs on Thursday was around $920 million, down from a March peak of over $10 billion. Sustaining inflows is impressive, with these ETFs accumulating $14.45 billion since January.
The slowdown in net inflows suggests a shift in investor sentiment, though the overall positive trend continues. As of now, BTC is priced around $62,603. It's uncertain if this trend will persist or if investor interest will revive soon.
Despite the slowdown, the continued inflows highlight the resilience and appeal of Bitcoin ETFs. This could reflect broader market trends and investor strategies influenced by macroeconomic factors and regulations.
Market analysts will be closely watching these ETFs in the coming weeks. The slowdown might be temporary or indicate changing market dynamics. New ETFs, like the proposed spot Solana ETF, could also affect investor sentiment.
In summary, while net inflows for US spot Bitcoin ETFs have slowed, the positive trend remains. Sustained inflows demonstrate their appeal. The market’s future performance will be closely monitored to see if investors' interest in Bitcoin and other cryptocurrencies rebounds. Investors should stay informed and consider various factors in their decisions.
