Bitcoin Bulls Optimistic as ETFs See $130M Inflows in July: First Mover Americas

As we dive into July, Bitcoin enthusiasts are finding reasons to celebrate after a lackluster second quarter that saw BTC struggling under the weight of substantial sales and pessimism among retail traders. The start of the month brought a glimmer of hope as U.S.-listed ETFs experienced inflows of nearly $130 million – the highest since early June – following over $900 million in outflows during the previous month. Historical data reveals that over the past decade, July has been a fruitful month for Bitcoin, with an average gain of more than 11% and positive returns in seven out of ten years. Presently, Bitcoin is hovering around $62,600, showing a slight decline of about 0.15% in the last 24 hours, while the CoinDesk 20 Index (CD20) is down approximately 0.2%.

On the other hand, professional investors have withdrawn over $120 million from ether-tracked exchange-traded products in the last two weeks, according to a report from CoinShares. These products witnessed net outflows of $60 million in each of the previous two weeks, marking the highest outflows since August 2022. In contrast, multiasset and bitcoin ETPs saw inflows of $18 million and $10 million, respectively, hinting at a potential shift in sentiment. With Ether ETFs on the brink of being tradable in the U.S. following SEC approval of applicants’ filings last month, the next hurdle is the approval of their S-1 filings before these products can hit the market.

Looking ahead, spot ether ETFs in the U.S. are anticipated to attract net inflows of $5 billion within the first six months, as projected by crypto exchange Gemini. When combined with the current assets under management of the Grayscale Ethereum Trust (ETHE), the total AUM for spot ETH ETFs in the U.S. could reach $13 billion-$15 billion in the initial six months. Gemini highlighted that despite Ether’s market value relative to Bitcoin being near multiyear lows, these inflows could enhance Ether’s relative position. The report from Gemini suggests a favorable risk-reward scenario for an ETH catch-up trade in the coming months.

In the realm of technical analysis, a chart indicates that Bitcoin is striving to surpass a descending trendline, which signifies the retracement from all-time highs. A breakthrough at this point could pave the way for short-term gains. However, on-chain analysis points to $65,000 potentially serving as a significant resistance level for Bitcoin. This chart analysis provides insights into the current market dynamics surrounding Bitcoin.

These developments in the crypto market set the stage for an intriguing month ahead, with Bitcoin and Ether facing varying challenges and opportunities as the market landscape continues to evolve.