By
Chimamanda U. Martha
July 4th, 2024
None of the US-based spot Bitcoin ETFs registered negative cash flow on Monday as BTC price attempts to regain bullish momentum.
After a brief period of cash outflow from United States-based spot Bitcoin (BTC) exchange-traded funds (ETFs) in the past few weeks, the trend is gradually changing. On Monday, July 1, US-based spot Bitcoin ETFs registered a total cash inflow of about $129.45 million. Remarkably, none of the US-based spot Bitcoin ETFs registered negative cash flow on Monday, signaling bullish sentiment from investors.
BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF with around $19.43 billion, registered a net zero in cash flow on Monday. Similarly, the Grayscale Bitcoin Trust (GBTC) registered a net zero cash flow on Monday and currently has net assets of about $17.41 billion.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led in cash inflow on Monday, with about $65 million. As a result, the FBTC has a total of $10.66 billion in Bitcoin exposure.
The second-best performance on Monday was reported by the Bitwise Bitcoin ETF (BITB), with a total cash inflow of about $ 41 million. The BITB currently holds about $2.42 billion in net assets.
The other top-performing spot Bitcoin ETF on Monday was the ARK 21Shares Bitcoin ETF (ARKB), with a total cash inflow of about $13 million.
Another notable cash inflow on Monday came from Invesco Galaxy Bitcoin ETF (BTCO), with around $3 million. The VanEck Bitcoin Trust (HODL), with a net cash inflow of about $5 million.
Meanwhile, the Franklin Bitcoin ETF (EZBC) reported a total cash inflow of about $2 million on Monday.
Direct Impact on Bitcoin Price Action amid Positive Cash Inflows to Spot ETFs
As Coinspeaker noted, Bitcoin price has been forming a bullish breakout pattern after successfully retesting the support level around $60K. Moreover, Bitcoin price has been consolidating between $72K and $60K in the past four months without a successful breakout on either side.
If the Bitcoin buyers continue to accumulate as the miners slow down on their selling pace, the flagship coins will easily rebound toward $70K in the coming weeks. The month of July has been attributed with a crypto bullish outlook, based on data studies from the last five years.
#Bitcoin is looking for a higher low and support. It seems very likely that we’ll be looking at the $61-61.5K area.
A slow grind upward is what I’m expecting for the markets in July. pic.twitter.com/LHnXTydh8P
— Michaël van de Poppe (@CryptoMichNL) July 2, 2024
However, if Bitcoin buyers fail to defend the $60K support level in the coming weeks, a possible capitulation towards $48K could lead to heavy losses in the altcoins.
Bigger Picture
The cryptocurrency industry is largely anticipating the listing of spot Ethereum ETFs in the United States. Most crypto analysts believe billions of dollars will proliferate the altcoin industry in the subsequent months. Moreover, the demand for altcoins by institutional investors has escalated fueled by the need for real-world assets (RWA) tokenization.
Nonetheless, the crypto industry will remain in a macro bullish outlook in the coming quarters based on the four-year cycle triggered by Bitcoin halving.