US Spot bitcoin BTC
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Exchange-traded funds (ETFs) recorded net outflows of $37.3 million last week for the third week in a row.
Grayscale’s Convertible GBTC ETF led the way with $155 million in high-fee fund outflows, while Franklin Templeton’s EZBC and VanEck’s HODL recorded net weekly outflows of $17.3 million and $3.3 million, respectively.
The remaining ETFs saw net inflows last week, led by BlackRock’s IBIT, which attracted $82.4 million, all on Friday. Ark Invest’s ARKB was second with $26.3 million in net weekly inflows, while Bitwise’s BITB was third with $15 million. Total net inflows into ETFs since they began trading in January are now $14.5 billion.
Adding on last week’s flows, the spot Bitcoin ETF’s net weekly outflow streak has now reached a record $1.16 billion. According to The Block’s data dashboard, this is the largest weekly outflow since the $1.05 billion four-week outflow between April 8 and May 6.
However, there are signs of that changing, with ETFs recording daily net inflows from Tuesday through Friday last week, totaling $137.2 million. Last Monday, the defunct exchange Mt. Following news that Gox plans to distribute approximately $9 billion worth of Bitcoin and Bitcoin Cash redemptions starting in July, Bitcoin briefly fell below $60,000, eliminating $174.5 million in funds. There was a net outflow.
According to The Block’s Bitcoin price page, Bitcoin is currently trading at $62,862, which is equivalent to Mt. This is a 2.8% increase compared to last week despite the Gox announcement and the German government’s continued sale of confiscated Bitcoin.
BTC/USD price chart. Image: TheBlock/TradingView.
Signs of Improving Sentiment for Bitcoin
Globally, digital asset investment products recorded net outflows of $30 million last week, according to a recent report from asset manager CoinShares. However, James Butterfill, head of research at CoinShares, said there are signs that sentiment toward Bitcoin is changing, with recent outflows “reducing significantly.”
US-based products led net inflows of $43 million, while funds based in Germany, Hong Kong, Canada and Switzerland saw total outflows of $79 million.
In contrast to the net outflows across the board over the past two weeks, most providers, with the exception of Grayscale, which is led by multi-asset and Bitcoin-based exchange-traded products, saw modest net inflows last week, generating $18 million and $10 million respectively. Bitcoin short products also saw net outflows of $4.2 million, adding weight to the potential sentiment shift.
Conversely, Ethereum-based ETPs have seen the largest net outflows since August 2022, totaling $61 million. Butterfill added that it is the best-performing asset class to date in terms of net flows, despite growing anticipation of a spot Ethereum ETF launch in the US.
Global trading volume rose 43% to $6.2 billion per week, according to CoinShares, but remains well below this year’s average of $14.2 billion per week.
Spot Ethereum ETF Launch Nears
The U.S. Securities and Exchange Commission (SEC) returned Form S-1s to Ethereum ETF issuers last week, ahead of the S-1 deadline.
The forms were delivered with a brief comment, a source at one publisher said Friday. Publishers were asked to address the comments and resubmit by July 8.
The source noted that if the form is resubmitted, it will not be a final filing, meaning the ETF will need to be filed at least once more before it can finally begin trading.
The S-1 form is the second part of the two-step process for an ETF to become active. In the first part, the issuer’s Form 19b-4 was approved on May 23. However, the S-1 is not bound by a specific deadline and the issuer is dependent on how quickly the SEC can roll it back.
VanEck and 21Shares files for U.S. spot Solana ETF
Solana also joined the action last week, with VanEck and 21Shares filing for spot Solana ETFs in the U.S. on Thursday and Friday, respectively.
However, the SEC previously designated SOLs as securities in a complaint filed last year against cryptocurrency exchanges Binance and Coinbase. Bitcoin and Ethereum spot ETFs were also not approved until CFTC-regulated futures markets and U.S. futures ETFs were first established.
“This could potentially be released sometime in 2025 if there is a new administration in the White House and the SEC.” said James Seyffart, Bloomberg Intelligence ETF analyst. “Even then, there are no guarantees.”
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