Key Takeaways
Over the seven days leading up to July 19, Bitcoin ETFs saw substantial inflows, peaking at $422.67 million, marking the highest level since June 6. However, this momentum has waned over the past few days.
What can we expect for Bitcoin ETFs in the week ahead?
Daily Total Net Inflow is the combined sum of daily net inflows for all US Bitcoin spot ETFs. This metric reflects the balance of supply and demand for the ETF and investor sentiment. A positive value indicates higher demand than supply for the ETF on that day, resulting in net buying of Bitcoin.
The chart above illustrates an uptrend on the left side, highlighting the daily net inflow since Thursday, July 11. According to Sosavalue , the inflows increased from $78.93 million to $310.21 million the following day and reached $301.04 million on July 15. The biggest spike occurred on July 16, with a peak inflow of $422.67 million.
The total inflow dropped significantly, amounting to $53.35 million on July 17 and $37.11 million on July 18, marking a notable drop from its recent peak.
As inflows increased, so did trading volumes, though with notable differences. While inflows peaked on July 16, BTC ETF volume reached its highest point on July 15, with a total of $2.27 billion.
This volume represented nearly a twofold increase from July 12, which stood at $1.14 billion. However, following the peak in inflows, a gradual decline in volume has been observed since July 15, reaching $1.39 billion by July 18.
Data from The Block notes that BlackRock (IBIT) contributed the most to this volume, commanding a market share of 67% at its peak on July 17. While this share decreased to 58% on July 18, BlackRock still retains over half of the market share.
Fidelity (FBTC) held the second position, maintaining a market share of around 18% over the past week, peaking at 13.13% on July 17. Grayscale Bitcoin Trust (GBTC) followed in third place, with a market share of approximately 12%.
On July 17, BlackRock set a 0.25% fee for its spot Ethereum ETF, with potential waivers reducing it to 0.12% for the first year and $2.5 billion in assets. Other firms like 21Shares, Bitwise , and Fidelity have also revealed their fees, ranging from 0.19% to 0.25%, with various waivers. While Grayscale’s converted ETF carries a relatively steep fee of 2.5%, it also offers a more competitively priced mini ETH ETF with a fee of just 0.25%.
With Ethereum ETFs set to potentially launch on July 23, major financial institutions are gearing up for a potential market shift. The timing of these announcements, aligning with the inflow peak on July 16, suggests that investors could be reallocating capital in anticipation of the new Ethereum Spot ETFs.
Since we saw a downtrend with both the inflow and volume diminishing from July 16, we could expect this trend to continue in the week ahead. If positive, further announcements about the Ethereum ETF could negatively affect the Bitcoin ETFs, while delays in the launch could lead to capital relocating to Bitcoin ETFs once again.