US spot Bitcoin ETFs recorded their first daily net inflow above $200 million since early May, signaling a potential bottom in the market. This comes as Bitcoin recovers to over $61,000 and sentiment
On July 3rd, US-listed spot Bitcoin exchange-traded funds (ETFs) experienced their largest daily inflow since early May, totaling $221.7 million in net assets. This significant influx marks a reversal from weeks of withdrawals that amounted to over $2.7 billion during the same period.
The primary driver behind this rebound was Fidelity's Wise Origin Bitcoin Fund (FBTC), which saw $166 million in inflows, accounting for about 75% of Thursday’s total. Other notable ETFs included ARKB with $91.8 million and Valkyrie Bitcoin Fund (BRRR) with $4.4 million. In contrast, the largest US spot Bitcoin ETF by assets, BlackRock's iShares Bitcoin Trust (IBIT), continued to experience outflows of $40.4 million.
This trend extended beyond just Bitcoin; altcoin investment products also posted net inflows on Thursday. Ether and XRP ETFs attracted a combined $35.7 million in new capital following days of outflows, indicating broader market sentiment is shifting towards optimism despite lingering fears as reflected by the Fear & Greed Index.
The recovery in ETF flows coincided with Bitcoin’s rebound to above $61,000 after briefly dipping below $59,000. Analysts like Matt Hougan from Bitwise suggested that this could mark a bottom for the market. However, the overall crypto market sentiment remains cautious, as indicated by an 'extreme fear' reading on Friday.
This event is significant given its potential to influence broader investor confidence in Bitcoin and other cryptocurrencies. For traders, it signals a possible shift towards more positive market dynamics but also highlights that caution should still be exercised due to the ongoing recovery phase.
Traders should continue monitoring key indicators such as daily inflows, ETF performance, and overall crypto sentiment for further signs of stability or potential reversals.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.