On July 1, U.S. spot exchange-traded funds based on the leading cryptocurrency recorded an outflow of $342.2 million, breaking a 15-day streak that totaled $4.7 billion.
The most popular instrument, IBIT from BlackRock, showed zero flow after 15 days of positive dynamics totaling $3.8 billion. The leader in outflows was FBTC from Fidelity with $172.7 million, followed by GBTC from Grayscale ($119.5 million), ARKB from ARK Invest ($27 million), and BITB from Bitwise ($23 million).
“This is a pause in institutional accumulation, but not necessarily a trend reversal,” commented lead analyst at BRN, Valentin Fournier.
Since their launch in January 2024, U.S. Bitcoin ETFs have attracted a total of $48.9 billion. This year, the inflow has amounted to $13.5 billion. The companies manage assets worth $128 billion.
At the time of writing, Bitcoin is trading at $107,481 (+0.8% for the day), according to CoinGecko.
“Markets are in a consolidation phase. Participants are waiting for clarity from unemployment data on July 3,” said Vincent Liu, Chief Investment Officer at Kronos Research.
Fournier considers Bitcoin’s consolidation between $105,000 and $110,000 a bullish setup, especially if regulatory clarity emerges or new institutional players enter the market.
The ETH-ETF Market
Funds based on the second-largest cryptocurrency by market capitalization showed an inflow of $40.7 million, led by ETHA from BlackRock with $54.8 million.
This marks the third consecutive day of gains, with a total volume of $150 million over the period. Since their launch in July 2024, ETH-ETFs have attracted $4.3 billion.
The price of Ethereum stands at $2,443, having decreased by 0.1% over the past day.
Statement from the Fed Chair
The outflows from Bitcoin ETFs coincided with a statement by Federal Reserve Chair Jerome Powell about maintaining a tight monetary policy. He linked the regulator’s stance to U.S. President Donald Trump’s trade tariffs.
Powell stated that the Federal Reserve would have already begun cutting rates if not for the tariffs, which have raised inflation forecasts.
Experts urged not to overemphasize the significance of a one-day outflow. MEXC exchange analyst Sean Yang called it “just a pause.” According to him, after an inflow of nearly $5 billion, investors are taking a break to reflect, and the Fed’s signals of maintaining high rates have reinforced this trend.
Yang noted that the regulator’s hawkish policy reduces demand for risky assets, including Bitcoin.
He also commented on the inflows into spot Ethereum ETFs. In Yang’s view, the dynamics indicate that investors are not leaving the market but are acting more selectively.
“One day of unusual trading in the ETF market does not negate the billions of dollars that have already flowed in,” concluded the analyst.
From June 21 to 27, inflows into crypto funds amounted to $2.7 billion.