The State of US Spot Bitcoin ETFs

The State of US Spot Bitcoin ETFs

The US spot Bitcoin ETFs have shown signs of improvement, with collective inflows reaching $21.52 million on June 26th. This positive momentum has been building since Tuesday, indicating a potential recovery in the market. However, BlackRock’s iShares Bitcoin Trust (IBIT) has not reported any new investments for the past four days, suggesting a lack of interest in the fund. This trend is consistent with BlackRock’s overall decline in activity, with only two minor inflows since June 14, both of which were under $2 million.

Zero Flows and Market Activity

Despite the lack of new investments in certain ETFs, it is important to note that zero flows do not necessarily mean that there is no trading activity. It simply indicates that the supply and demand are balanced, leading to no significant net flow that would require share adjustments. This phenomenon has been observed in other spot Bitcoin ETFs such as BITB by Bitwise, BTCO by Invesco and Galaxy Digital, and BRRR by Valkyrie offerings. On the contrary, Fidelity’s FBTC saw a substantial net inflow of $19 million on June 26th, breaking a seven-day streak of outflows that started on June 13.

Reversal of Trends

The reversal of trends in the spot Bitcoin ETF market is evident with FBTC leading the pack in terms of net inflows. This shift is a positive sign for the market, indicating renewed interest in these investment vehicles. Even Grayscale’s GBTC, which had seen no positive flows since June 5, attracted over $4 million on the same day. Since their introduction in January, these investment vehicles have cumulatively attracted $14.44 billion in net inflows, showcasing the growing popularity of Bitcoin-based investments.

The US spot Bitcoin ETFs are showing signs of recovery and renewed interest from investors. While some funds have experienced zero flows, others are experiencing positive momentum and attracting significant inflows. This dynamic market environment underscores the importance of closely monitoring market trends and staying informed about the evolving landscape of cryptocurrency investments.

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