Bitcoin ETF net inflows have surged to a record high, reaching $1.05 billion in the past week, with an all-time high (ATH) on June 12th. This surge underscores the growing demand for Bitcoin ETFs.
Demand: Immediate post-launch demand validated the years of discussions before approval.
Altcoins: The success of Bitcoin ETFs has led to the development of Ethereum and Solana ETFs, with more altcoins expected to follow.
Volatile June Market
Early June: Initial net flows were negative, causing investor uncertainty.
Early July Turnaround: Modest inflows of $21 million and $12 million on the first two days of July increased to $73 million and $129 million on the third and fourth days.
Market Crash: Outflows of -$14 million and -$21 million on the 5th and 6th were linked to the German government selling seized Bitcoin and Mt. Gox transferring hacked tokens.
Rebound and Record Highs
Rebound: A $143 million net inflow on the 8th, followed by $295 million and $216 million on the 9th, led to the highest weekly inflows in months.
ATH on June 12: The market reached a new ATH with inflows exceeding $310 million, driven by six consecutive days of inflows.
Key Contributors
Major Inflows: BlackRock ETF (IBIT) with $120 million, Fieldy ETF (FBTC) with $115 million, and Grayscale RTF GBTC with $23 million.
Bitcoin Price Movements: Bitcoin’s price dropped from $63,599 on July 1 to a low of $53,905 on July 5, coinciding with negative net flows. As inflows surged, so did Bitcoin’s price, currently at $58,059.63.
This exceptional week for Bitcoin ETFs marks the best performance in months, with significant inflows reflecting the market’s growing optimism.
