Bitcoin and Ethereum exchange-traded funds (ETFs) have seen a significant turnaround, registering net inflows after a challenging two-month period marked by substantial outflows.

For the first time since May, U.S. spot Bitcoin ETFs attracted approximately $197 million in net inflows last week, following a loss of $527 million the week prior. Ethereum ETFs also rebounded, drawing in around $84 million after a minor outflow the previous week, resulting in a combined total of about $282 million across both asset classes.

The inflows were particularly strong at the beginning of the week, with Bitcoin ETFs recording $265.7 million on Monday and an additional $21.5 million on Tuesday. However, midweek saw a reversal as geopolitical tensions in Iran led to outflows of $84.9 million on Wednesday and $95.3 million on Thursday. By the week's end, Bitcoin ETFs managed to close with a $90.4 million inflow, aided significantly by BlackRock’s IBIT, which purchased $209.4 million on Monday and $86.8 million on Friday. This is noteworthy given that IBIT was responsible for the largest outflows in June, indicating a shift in strategy.

Despite the inflows, Bitcoin's price fluctuated, rising to $64,000 before settling just under $63,000 overnight. The upcoming week could be pivotal for the market, with the Consumer Price Index (CPI) report set for release on Tuesday, which will serve as a crucial indicator ahead of the Federal Open Market Committee (FOMC) meeting on July 28-29. Should inflation show signs of easing, it could support continued inflows; however, sustained high inflation could jeopardize the recent recovery.

Market Overview

  • Major cryptocurrencies experienced a drop of 1-3% following a selloff; Bitcoin is at $63,000, Ethereum at $1,780.
  • Oil prices rose by 3.5% to $74, while gold fell by 1% to $4,070.
  • Stock futures are down due to escalating tensions in Iran; the DOW is flat, and Nasdaq is down 0.9%.

Crypto Developments

  • Robinhood Chain reported over $2 billion in decentralized exchange (DEX) volume over the weekend, with more than 800,000 active addresses.
  • NEAR successfully launched its v2.13.0 mainnet upgrade.
  • Zcash has scheduled its Ironwood upgrade for July 28 to address previous counterfeiting issues.

Meme Coin Performance

  • Most major meme coins saw losses this week, with Dogecoin down 6% and Shiba Inu down 4%.
  • Robinhood chain memes rebounded, with notable increases in several tokens following a weekend decline.