US Bitcoin ETFs See $20.45M Outflow: Nine Funds Remain Flat

US-based bitcoin exchange-traded funds saw net outflows of $20.45 million on Wednesday. Interestingly, only two of these funds showed activity amid the market uncertainty.

Grayscale’s GBTC fund saw outflows of $26.99 million, while Fidelity’s FBTC fund made a gain of $6.55 million. The remaining nine funds, including BlackRock’s IBIT, Bitwise’s BITB, and VanEck’s HODL, did not record any inflows.

US ETF Market Momentum Declines

according to Data According to data compiled by SoSoValue, the 11 ETFs had trading volume of about $800 million on July 3, down from $995 million the day before. That’s a significant drop from March, when daily trading volumes ranged between $8 billion and $10 billion. Despite recent volatility, the ETFs have attracted a total of $14.62 billion in net inflows since their launch in January.

US Bitcoin ETFs started July on a positive note, recording their largest daily inflow in nearly a month on the first day, totaling $129 million. This is in line with historical patterns, which show that Bitcoin often starts July on an upward trend. The new inflows were a positive sign after a turbulent June that left Bitcoin ETFs bleeding.

But subsequent weak flows have disappointed investors.

While July has historically been a stronger month for the world’s largest digital asset, the first week was nothing short of turbulent. Bitcoin fell to $56,770, a level last seen in February.

The latest price drop came after the German government moved another batch of confiscated bitcoins. According to Arkham Intelligence, around 1,300 bitcoins worth nearly $76 million were sent to three major exchanges — Kraken, Bitstamp, and Coinbase. An additional $99 million in bitcoin was moved to a separate address identified as 139Po.

Moreover, whales have started selling again. On July 4, Spotonchain, an on-chain monitoring platform, monitored 1,700 BTC worth over $99 million being transferred to Binance.

This activity suggests that these entities are making profits. Furthermore, the timing of this move after the recent decline in the price of Bitcoin suggests that it may be a risk mitigation strategy, likely aimed at reducing their Bitcoin holdings.

Bitcoin ETF Flows Rise?

Despite the bleak picture, Bitcoin ETF inflows may see a rise.

In a statement to cryptopotatoJag Conner, head of derivatives at Bitfinex, said that increased ETF inflows could occur if market participants believe that “economic uncertainty will eventually push the Fed toward lowering interest rates, enhancing Bitcoin’s appeal as a hedge against inflation.”

“However, large inflows will depend on broader market sentiment and risk appetite. However, we have recently seen largely disappointing inflows and a lack of ‘buy the dip’.”