Bitcoin ETFs Attract $222M, Ending 10-Day Outflow Streak

Summary

• U.S. spot Bitcoin ETFs attracted $221.7 million on Thursday, breaking a ten-day outflow trend and marking the highest inflow in nearly two months.
• This inflow follows a period of approximately $2.7 billion in withdrawals, making June the worst month for these funds with total outflows reaching $4.5 billion.
• Fidelity's FBTC led the inflow, gaining $166 million, while BlackRock's IBIT continued to decline with a $40 million outflow.

After enduring ten consecutive days of losses, U.S. spot Bitcoin ETFs turned a corner on Thursday, recording a significant inflow of $221.7 million. This marked the highest daily intake in almost two months, driven by a disappointing jobs report and a more dovish outlook from the Federal Reserve regarding interest rates.

Fidelity's FBTC was the standout performer, contributing $166 million to the inflows, while ARKB brought in $91.8 million, and VanEck's HODL saw $4.4 million. Conversely, BlackRock's IBIT experienced a continued decline, losing $40.4 million amidst a broader trend of outflows that saw $2.7 billion withdrawn over the previous ten days. June is now recorded as the worst month for Bitcoin ETFs.

The backdrop for this shift included a weaker-than-expected June jobs report, which revealed only 57,000 new nonfarm payrolls—well below the anticipated 110,000. As a result, Fed Chair Kevin Warsh's comments on lowering inflation risks have eased expectations for further interest rate hikes, providing a boost to market sentiment and influencing Bitcoin’s price increase back above $61,000.

Market Sentiment and Future Expectations

According to analysts, this uptick in inflows is linked to expectations shifting towards a less aggressive monetary policy. Andri Fauzan Adziima from Bitrue Research Institute noted that Warsh's remarks enhanced overall market sentiment, positively impacting Bitcoin and Ethereum ETFs, which also saw inflows of $14.9 million and $29.1 million, respectively, on Wednesday and Thursday.

However, caution remains regarding whether this uptick signals a sustainable trend reversal. Tim Sun from HashKey highlighted that there is still uncertainty in the market, with Bitcoin's future trajectory closely tied to real interest rates and Federal Reserve actions. Stephen Wundke of Algoz Technologies observed that investors are starting to buy undervalued assets, with Bitcoin fluctuating around its bottom. He cautioned that while the outlook is stabilizing, Bitcoin may continue to fluctuate for a few more weeks.

Despite the recent positive movements, market participants express caution. On the Myraid prediction platform, users assign a 74% probability to Bitcoin's next move trending toward $55,000 rather than rebounding to $84,000, indicating a sense of prevailing pessimism about future price movements.