U.S. spot Bitcoin exchange-traded funds (ETFs) saw a major rebound on Thursday, recording net inflows of $158 million. This inflow marks a significant turnaround from the $52 million in outflows seen the day before.
Ark Invest and 21Shares led the inflows with $81 million, closely trailed by Fidelity’s FBTC, which recorded $49 million in inflows. Bitcoin’s price rose to $63,500, driven by positive market momentum.
Bitcoin ETFs Record Strong Rebound
On Thursday, US Bitcoin ETFs saw $158 million in new investments, a significant increase from the previous day’s $52 million net outflows.
According to SoSoValue, Ark Invest & 21Shares’ ARKB fund saw the highest inflows, $81 million. Following close behind, Fidelity’s FBTC registered $49 million in net inflows. Bitwise’s BITB also saw positive flows, with $10 million in inflows.
Other funds, like Grayscale’s Bitcoin Mini Trust, received $9 million, while Franklin Templeton’s EZBC reported a $7 million inflow.
Seven of the 12 Bitcoin ETFs experienced zero movement despite a generally positive day. Nonetheless, the overall inflows marked a notable recovery after a day of outflows, suggesting renewed investor confidence in the market.
Bitcoin Nears $64,000 After Bank of Japan’s Interest Rate Decision
Recently, the Bank of Japan (BOJ) decided to maintain interest rates at 0.25%, triggering positive market sentiment. This renewed optimism was reflected in BTC’s price movement, as the asset rose from below $60,000 to around $63,550, representing an increase of almost 6%.
BTC is trading at $63,300, still holding some gains. It is up 9.14% over the past week, with a trade volume of $41.7 billion. Bitcoin’s recent price rally can also be attributed to a 50-basis point rate cut by the US Federal Reserve, further fueling market optimism.
Analyst: Spot Bitcoin ETFs continue to attract inflows, reflecting increased institutional interest
Rachael Lucas, a crypto analyst at BTC Markets, told The Block that the recent Bitcoin rally breaking above $68,000 is driven by substantial inflows into spot Bitcoin ETFs.…
— CoinNess Global (@CoinnessGL) July 22, 2024
BTCMarkets analyst Rachael Lucas commented on the ongoing market situation.
“Bitcoin is showing a strong short-term trend, currently testing its 200-day simple moving average (SMA),” Lucas said.
She noted that “a true bull cycle, with sustained higher highs and higher lows,” would require a significant rise in retail volume.
Bitcoin’s rise mirrors gains seen in traditional markets, including the S&P 500 and Nasdaq. Lucas emphasized that the growing value of Bitcoin aligns with a broader “risk-on” sentiment across global markets.
However, she pointed out that the retail volume remains low, which may affect whether Bitcoin can maintain its upward momentum in the long term. Nonetheless, Bitcoin’s recent price action shows strength, supported by positive economic signals and ETF inflows.
Ether ETFs Record Modest Gains as BlackRock Leads Inflows
On Thursday, Ether exchange-traded funds (ETFs) recorded $5.24 million in net inflows, all coming from BlackRock’s ETHA fund. The other eight funds saw no inflows for the day.
Ether ETFs experienced a total daily trading volume of $250.84 million, an increase from Wednesday’s $221.88 million. Despite this uptick, US Ethereum ETFs have collectively seen negative net flows of $610.35 million since their launch in July, according to SoSoValue data.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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