First Mover Americas: Bitcoin Bulls Hopeful Entering July as ETFs Record $130M Inflows

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Bitcoin bulls may have reason to cheer as we enter July following an uninspiring second quarter in which BTC was weighed down by billions in sales and negative sentiment among retail traders. The first day of the month saw U.S.-listed ETFs record nearly $130 million in inflows – the most since early June – after more than $900 million in outflows over the month. Over the last decade, bitcoin has gained by an average of more than 11% in July, with positive returns in seven of the 10 years, data shows. Bitcoin is currently trading at around $62,600, a drop of about 0.15% in the last 24 hours. The CoinDesk 20 Index (CD20) is down by around 0.2%.

Professional investors withdrew over $120 million from ether-tracked exchange-traded products in the past two weeks, CoinShares said in a Monday report. Such products recorded $60 million in net outflows in each of the past two weeks, the most since August 2022. Elsewhere, multiasset and bitcoin ETPs recorded inflows at $18 million and $10 million, respectively, suggesting sentiment may be turning. Ether ETFs are close to becoming available for trading in the U.S. after the SEC approved applicants' filings last month. The regulator must also approve their S-1 filings before the products are cleared to trade.

Spot ether ETFs in the U.S. could see net inflows of $5 billion in the first six months, according to crypto exchange Gemini. The flows, when combined with the current Grayscale Ethereum Trust (ETHE) assets under management give a total AUM for spot ETH ETFs in the U.S. of $13 billion-$15 billion in the first six months, the report said. Gemini noted that ether’s market value relative to bitcoin remains close to multiyear lows, and the inflows could improve ether's relative standing. “Given the AUM comparable in international ETF markets, robust on-chain dynamics, and differentiating factors such as a thriving stablecoin environment, there is favorable risk-reward of an ETH catch-up trade in the months to come,” Gemini said.

- Omkar Godbole