Bitcoin ETFs bleed while Ethereum and other altcoins attract fresh inflows: Details

Early July saw a new wave of inflows, but by the end of July, inflows had once again fallen short of outflows.

During the last week, the Spot Bitcoin [BTC] ETF experienced $326.7 million in withdrawals and saw $265.2 million in inflows. BlackRock’s IBIT experienced the largest outflows in the last week, totaling $186.3 million.

In contrast, Ethereum [ETH] ETFs had a stronger inflow trend than Bitcoin ETFs with regards to the daily streak. According to SoSo Value data, ETH ETFs received $27.42 million in inflows with just one day of outflow worth $32.9 million.

Though in this case too the inflows were less than outflows, if looked at BTC ETF, then the past week saw three days of outflows and only 2 days of inflows. Here, however, BlackRock’s ETHA saw the largest inflows, totaling $36.6 million. 

Are other ETFs following BTC ETFs?

Additionally, the Solana [SOL] ETF saw $2.82 million in weekly inflows, and the XRP ETF saw $14.85 million in inflows. In contrast, the DOGE ETF experienced no weekly flows, while the HYPE ETF saw $14.75 million of inflows.

Nonetheless, a recent analysis by AMBCrypto further suggests HYPE ETF flows have been increasing on a market capitalization basis in contrast to ETFs for BTC, ETH, SOL, and XRP.

This shows how smaller cryptocurrencies have a bigger impact even though they draw less capital overall because those inflows comprise a bigger percentage of their market value. 

That said, even the altcoin index was standing at 53, indicating that altcoin season is also officially here. This further explains why Bitcoin ETFs have not been keeping up with their momentum as investors are rotating elsewhere.

Is price action spilling some tea?

Simultaneously, on the price front, BTC dropped from about $64,000 to $62,556.58 at the time of writing after a decrease of over 4% in the past week.

The price movements of other altcoins showed similar patterns. This indicates that in the case of Bitcoin, the price action was the one affecting the ETFs inflows.

Whereas in the case of altcoins, the ETFs were drawing inflows despite the dropping price action. 

Weekly events that impacted the ETFs

This occurs during the same week that the yield on the 30-year U.S. Treasury recently increased to 5.234%, the highest level since 2007, before falling to 5.185%.

Additionally, Strategy’s Michael Saylor supported his claim that the cryptocurrency is in a bottoming phase as Bitcoin had dropped to its 200-week Moving Average (MA). 

Lastly, the U.S. Federal Reserve sent conflicting signals to financial markets by maintaining interest rates at 3.50%–3.75% for a fifth consecutive meeting. All these factors might have further acted as catalysts, leading investors to shift from Bitcoin to other altcoins for a safer ride. 

Final Summary

• Bitcoin ETFs saw more outflows than inflows when the price dropped from $64k to $62k.
• Other altcoins were strong with more days of inflows as compared to Bitcoin ETFs with a few exceptions.