In a notable trend, spot Bitcoin ETFs have experienced $527 million in net outflows between June 29 and July 2, marking the eighth consecutive week of withdrawals. The latest figures indicate ongoing weak demand for Bitcoin-based funds, despite some products reporting minor daily inflows.
Continuous Outflows for Bitcoin ETFs
This week’s data reveals that Bitcoin ETFs are struggling as investors withdrew $527 million over just four days of trading. Notably, Ethereum ETFs are also in a downturn, reflecting a broader lack of enthusiasm for both leading cryptocurrencies.
On July 2, Bitcoin ETFs did see a brief respite with $221.7 million in net inflows, breaking a ten-day streak of daily withdrawals. Fidelity’s FBTC was at the forefront of this recovery, attracting approximately $166 million, followed by ARK 21Shares’ ARKB with about $91.8 million in inflows.
BlackRock’s Impact
BlackRock’s IBIT fund has been a significant contributor to the pressure faced by Bitcoin ETFs, reporting outflows every trading day from June 29 to July 2. This consistent pattern suggests that a single strong inflow cannot counteract the overarching trend of weekly withdrawals.
Ethereum ETFs Under Pressure
Ethereum ETFs faced a similar fate, ending the same four-day period with $13.67 million in net outflows, extending their own negative streak to eight weeks. Even with positive daily flows on July 1 and July 2, earlier redemptions prevented these gains from fully recovering the losses. BlackRock’s ETHA managed to draw in about $29.7 million on July 2, which aided in partially offsetting its previous downturn.
Despite some sporadic investor interest, overall demand for Ethereum and Bitcoin funds remains inconsistent. Traders are closely monitoring price levels for ETH, which adds to the uncertainty surrounding investor behavior.
Altcoin Funds Show Resilience
Interestingly, altcoin-related funds are breaking the trend of withdrawals. Spot SOL ETFs saw inflows of $5.75 million during the same period, while XRP ETFs added $17.19 million, and HYPE ETFs brought in $4.32 million. Although these inflows are smaller than the outflows from Bitcoin ETFs, they indicate a shift in investor interest towards assets outside of Bitcoin and Ethereum.
Recent trends suggest this may be an emerging pattern, as XRP ETFs had impressive inflows of $131.94 million in May, significantly outpacing those of Bitcoin and Ethereum funds, which faced substantial withdrawals.
