In a new twist, a variety of developments emerged regarding the 11 proposed US Bitcoin ETFs. Most notably, the funds observed a daily decrease in net assets totaling $13.62 million on Tuesday, representing a big shift back to negative cash flows after five consecutive days of inflows.
This has also brought Bitcoin’s price down to $62,107 as of July 2nd. On July 3rd, the cryptocurrency was at $60,712.31, down 2.79%.
Grayscale’s GBTC product led the downturn, witnessing outflows of $32.38 million. Meanwhile, Bitwise’s BITB offering followed suit, with a loss of $6.76 million, according to data from SosoValue.
Elsewhere, patrons and contenders of Bitcoin ETFs continue to debate the merits and risks of such investment vehicles entering the regulated markets. In general, market volatility continues to be a concern, as the SEC’s approval of US Spot Bitcoin ETFs remains uncertain, as they have not yet been explicitly regulated by the SEC.
While Bitcoin’s price decreased slightly over the past day, long-term projections for it remain optimistic. Standard Chartered’s reports posit that Bitcoin could surpass its all-time high as early as August and potentially hit six figures by the fall.
However, the report has also indicated that the midterm elections in the United States could have a short-term impact on the Bitcoin price.
Further, the bank’s analysts believe that should the current Democratic Party President, Biden, withdraw from contesting the election, the cryptocurrency may retrench to between fifty and fifty-five thousand dollars temporarily. Despite the short-term volatility, the majority of experts maintain optimistic views regarding Bitcoin’s historic increase in value as mainstream adoption expands.
Despite the outflows, some ETFs saw an increase in assets. BlackRocks IBIT attracted $14.12 million, while Fidelity’s FBTC received inflows of $5.42 million. VanEck’s Bitcoin fund gained $3.51 million. Ark Invest and 21Shares ARKB reported inflows of $2.48 million.
The trading volume for these funds remained below $1 billion on Tuesday, showing a drop from the peak volumes seen in March, which ranged from eight to ten billion dollars per day. Since their launch in January, the ETFs have accumulated an inflow of $14.64 billion.