Bitcoin ETFs surpass $16 billion in netflows, setting a new all-time high

Source: Crypto Briefing

The spot Bitcoin (BTC) exchange-traded funds (ETFs) crossed $16 billion in yearly netflows for the first time, as reported by Bloomberg ETF analyst Eric Balchunas. He calls this movement a “two steps forward, one step back,” with this one step back being the underperformance in June. 

“Bitcoin ETFs are in ‘two steps forward’ mode after one step back in June with another +$300m yesterday and $1b for week. YTD net total (the most imp number in all this) has crossed +$16b for first time. Our est for first 12mo was $12-15b so already cleared that w 6mo to go,” shared the ETF analyst on X.

the Bitcoin ETFs are in “two steps forward” mode after one step back in June with another +$300m yesterday and $1b for week. YTD net total (the most imp number in all this) has crossed +$16b for first time. Our est for first 12mo was $12-15b so already cleared that w 6mo to go. pic.twitter.com/0V7wE9D5OU

— Eric Balchunas (@EricBalchunas) July 16, 2024

As highlighted by Balchunas, the estimate from him and fellow ETF analyst James Seyffart was that the spot Bitcoin ETFs would reach between $12 billion and $15 billion in netflows within a year. However, this prediction fulfilled itself in six months.

As reported by the X user identified as Lookonchain, nine Bitcoin ETFs added 5,383 BTC to their holdings yesterday, which amounts to over $340 million. BlackRock led by adding 1,844 BTC to their holdings, which is currently 318,120 BTC. 

Notably, the only spot Bitcoin ETF that didn’t add any BTC to their holdings yesterday was the Valkyrie Bitcoin Fund.

Moreover, the Bitcoin ETFs saw the fifth-largest weekly inflow last week, amounting to $1.35 billion, according to asset management firm CoinShares. Coupled with net outflows for funds indexed to short BTC positions, this signals an overall positive sentiment from investors.

In June, Ether and Solana showed significant momentum in the crypto markets, potentially attracting between $1 billion to $3 billion in net inflows due to growing ETF interest.

Earlier this month, spot bitcoin ETFs experienced net inflows of $790 million, despite a 7% decline in bitcoin’s price in June.

Earlier this week, Bitcoin ETFs recorded over $300 million in net inflows, marking their most substantial influx since early June.

In May, consensus attendees discussed President Biden’s inconsistent positions on crypto regulations, with mixed reactions about his stance’s authenticity.

Recently, CoinDesk chronicled the ascent and subsequent collapse of the Terra ecosystem, highlighting the dramatic failures of UST and LUNA.

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Author: Gino Matos