Spot Bitcoin ETFs Hit Monthly High with $129M Inflows

On Monday, spot Bitcoin exchange-traded funds (ETFs) recorded daily net inflows of $129.45 million, marking the highest single-day inflow since June 7 and the fifth consecutive day of positive inflows, as reported by SosoValue.

Leading the pack was Fidelity’s FBTC, which secured $65 million in investments. Bitwise’s BITB followed with $41 million, while Ark Invest and 21Shares’ ARKB saw $13 million in net inflows. Other notable players like Invesco, Galaxy Digital, VanEck, and Franklin Templeton recorded smaller inflows ranging from below $5 million to around $5 million.

Interestingly, BlackRock’s IBIT and Grayscale’s GBTC, the largest spot Bitcoin ETFs by net asset value, did not experience any inflows on Monday.

Collectively, these 11 Bitcoin funds generated approximately $1.36 billion in trading volume on Monday. Since their launch in January, they have amassed a total net inflow of $14.65 billion.

Digital Asset Investment Products Experience Outflows

In contrast, digital asset investment products faced outflows for the third consecutive week, totaling $30 million, though the rate of outflows decreased compared to previous weeks, according to a report from CoinShares.

Grayscale reported significant outflows of $153 million, while most providers saw minor inflows. Trading volumes for digital asset investment products increased by 43% week-on-week, reaching $6.2 billion, although still below the yearly average of $14.2 billion.

Geographically, the United States, Brazil, and Australia saw inflows of $43 million, $7.6 million, and $3 million, respectively. On the other hand, Germany, Hong Kong, Canada, and Switzerland experienced outflows of $29 million, $23 million, $14 million, and $13 million, respectively.

Ethereum notably faced its largest outflows since August 2022, with $61 million in the past week, bringing the two-week total to $119 million, making it the worst-performing asset in net flows year-to-date.

Meanwhile, multi-asset and Bitcoin exchange-traded products (ETPs) saw inflows of $18 million and $10 million, respectively. Short-bitcoin ETPs experienced outflows of $4.2 million, suggesting a potential shift in sentiment. Additionally, altcoins like Solana and Litecoin recorded notable inflows.

Analysts Predict Bullish July for Bitcoin

Analysts at QCP Capital remain optimistic about Bitcoin and Ether’s performance in July, citing positive seasonality trends. Historically, Bitcoin has a median return of 9.6% in July, often rebounding strongly after a negative June.

“Our options desk observed positioning for an upside move last Friday into the month-end, potentially anticipating the ETH spot ETF launch. Many indicators suggest a bullish July,” QCP analysts wrote.

They recommended a BTC Accumulator trade with an expiry of September 20, 2024. This strategy involves buying BTC below $60,000, capitalizing on bullish momentum, with a strike price of $59,000 and a barrier at $71,000 to cap the trade if BTC exceeds this level.