U.S. Bitcoin ETFs Witness $61.98 Million Daily Inflows Amidst Low Trade Volume

by Nicholas Edwards · 20/08/2024

U.S. spot bitcoin ETFs saw $61.98 million in daily net inflows on Monday despite the lowest trade volume since February, highlighting cautious investor sentiment amid market uncertainty.

Bollywood Fever: U.S. spot bitcoin exchange-traded funds (ETFs) experienced net inflows of $61.98 million on Monday, despite a total daily trade volume of $779.87 million, marking the lowest trading day since February 6 and the third lowest overall.

Data from SoSoValue reveals that Monday’s trade volume represented a significant drop from the $5.24 billion seen on August 6. This downturn in activity is reflective of the ongoing cautious market sentiment following heavy sell-offs in recent weeks.

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“The low trading volume is expected as the market sentiment has remained low since the heavy sell-offs a few weeks ago,” explained Augustine Fan, Head of Insights at SOFA.org, in an interview with The Block. He further noted that summer holidays and reduced concerns about an imminent recession, supported by recent economic data, have led investors to adopt a wait-and-see approach ahead of the Federal Reserve’s Jackson Hole meeting later this week.

The day saw substantial net inflows of $92.68 million into BlackRock’s IBIT and $3.87 million into Fidelity’s FBTC. However, these gains were partially offset by $25.72 million in net outflows from Bitwise’s spot bitcoin fund and an $8.84 million outflow from Invesco’s BTCO.

Spot ether ETFs, meanwhile, reported their lowest daily trade volume since their inception, totaling around $124 million. The nine spot ether funds recorded a combined $13.52 million in net outflows, led by Grayscale ETHE’s $20.30 million outflow. Grayscale’s Ethereum mini trust did see minor net inflows of $4.92 million, while Bitwise’s ETHW added $1.87 million.

“Traditional finance remains cautious with ETH ETF purchases due to ongoing uncertainties surrounding staking legalities and recent withdrawals of Solana ETF approvals,” Fan commented, noting the broader apprehension within the market. Earlier, The Block reported that the U.S. Securities and Exchange Commission (SEC) had raised concerns about Solana’s potential classification as a security, prompting Cboe BZX to withdraw its Solana ETF filings.

In terms of cryptocurrency prices, bitcoin rose by 4.22% over the past 24 hours to $60,935, while ether saw a 1.68% increase to $2,672, according to data from The Block’s crypto price page.

“BTC remains range-bound around 60k, as fears of supply-side selling continue to weigh on prices, despite an improved macroeconomic sentiment,” Fan added. “Conversely, ETH continues to struggle due to fundamental issues such as low mainnet usage compared to Layer 2 solutions.”

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