Bitcoin ETFs Experience Major Inflow of $221.7 Million on July 2
Bitcoin ETFs recorded a notable inflow of $221.72 million, ending a ten-day outflow streak amid a broader market recovery.
On July 2, Bitcoin (BTC) exchange-traded funds (ETFs) reported a substantial net inflow of $221.72 million, ending a streak of ten consecutive days of outflows.
This inflow increased the total net assets held by these funds to $74.37 billion, marking a significant recovery following the largest institutional pullback since their inception.
Background on Recent Outflows
Prior to this positive shift, Bitcoin ETFs had suffered significant losses, with over $2.7 billion exited during the previous ten trading days alone. Furthermore, the funds experienced their worst month on record in June, where they collectively lost $4.5 billion, primarily driven by BlackRock’s iShares Bitcoin Trust (IBIT), which accounted for approximately 79% of the outflows, shedding $3.55 billion.
Performance of Other Crypto ETFs
Other cryptocurrency-related ETFs also saw inflows on July 2. Ethereum (ETH) ETFs led with inflows totaling $29.08 million, which followed an inflow of $14.89 million the day before, ending a nine-day losing streak.
- Hyperliquid (HYPE) ETFs saw an addition of $2.24 million.
- Solana (SOL) ETFs attracted $2.2 million.
- XRP (XRP) ETFs experienced a reversal, bringing in $6.55 million after two prior days of outflows.
Market Context for the Inflow
The inflow coincided with a broader recovery in Bitcoin prices, which surged past $60,000 on July 1. This spike was triggered by comments from Federal Reserve Chair Kevin Warsh indicating a decrease in inflation risks.
The increase persisted into July 2, with Bitcoin peaking above $62,000 following a disappointing jobs report that revealed only 57,000 new positions—approximately half of economists' expectations. This economic data contributed to a reduction in the probability of a Federal Reserve rate hike, which dropped to 17.6% from 28.9% a day earlier, according to CME FedWatch.
It remains unclear whether the recent inflow will be sustained or if it is merely a temporary rebound triggered by market conditions.
