Cryptocurrency ETF flows not encouraging
For the third week in a row, world cryptocurrency exchange-traded funds recorded an outflow, having lost a total of $1.2 billion in investments.
The bulk of the losses fell on the American spot Bitcoin ETF, which peaked at $15.9 billion on June 07. Over the past four working days, the inflow of funds has resumed, which nevertheless remains significantly below the average of $126 million per day.
On the inflow side, things are even worse in Hong Kong Bitcoin ETFs. These started on May 02 at $248 million and have since lost $30 million or 12.1%.
A decadent mood is in line with the protracted consolidation of Bitcoin.
About half of the inflow into spot ETFs was provided by retail investors, who for the most part do not engage in long-term planning. Since public interest has been diverted toward the growth of the AI sector (in particular, NVIDIA shares), a number of investors preferred to withdraw funds from cryptocurrency funds.
In terms of outflow, Ethereum deserves special attention. Despite the expected approval of spot ETFs in the United States this month, over the past two weeks, investors have withdrawn a record $119 million since August 2022. According to the results of the first half of the year, Ethereum took the position of an outsider and became the only crypto asset with negative dynamics.
Last week, the SEC rejected Form S-1 filings for Ethereum spot, asking for additional adjustments by July 08. Thus, approval will take place closer to the middle of the month or later.
Without new momentum, leading cryptocurrencies are likely to continue to drift within the established channel. However, the long-term outlook still hints at continued growth.
One of the signs of the future rally was noted by the head of the research department of the FalconX platform David Lowant: the Coinbase prize against Binance (the difference in the value of Bitcoin) again plunged into the negative zone. The last time such a drawdown was observed in October 2023, after which Bitcoin grew 1.6 times in three months.
StormGain Analytics Group
(a platform for trading, exchanging and storing cryptocurrency)
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