Spot Bitcoin ETF volumes have just reached their highest level in over 2 months. Does this increase mark the start of a new bull market or just a temporary phenomenon?
Towards a return of significant volumes on spot Bitcoin ETFs?
Compared to the start of the year, spot Bitcoin ETF volumes have been relatively low in recent weeks. With a balance of around $3 billion in the first weeks of July, net volumes have declined sharply since July 22, totaling only $160 million through the start of last week.
However, this week shows a rebound in volumes, with $135 million in net volumes this Tuesday, $105 million on Wednesday, and finally a new record yesterday, the highest level in over 2 months.
📈 Everything you need to know about spot Bitcoin ETFs
Indeed, on Thursday September 26, Spot Bitcoin ETFs Record Over $365 Million, Highest Since July 22.
In detail, Grayscale's GBTC remains behind with $7.73 million in net outbound volumeswhile Fidelity's FBTC closed its day with a positive balance of $74 million, closely followed by Bitwise's BITB and its $50 million.
For his part, BlackRock's IBIT nets $93.38 millionwhile, surprisingly, it is Ark & 21Shares' ARKB leads with $113.82 million.
Total Spot Bitcoin ETF Volumes
This drop in attractiveness during the summer is partly explained by the summer season, historically one of the least successful on the financial markets. It is also linked to the pause in the price of Bitcoin, after a significant increase of 190% between September 2023 and March 2024..
Approved in July 2024, the Ethereum spot ETFs failed to attract as many investors as hoped, recording a net balance of $581 million in net outflows. The end of summer could, however, benefit Ether and its spot ETFs.
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Could the bull run come from spot Bitcoin ETFs?
Although it is impossible to predict whether ETF volumes will continue to increase, it is certain that, if they do, this will help to exert buying pressure on the price of Bitcoin, both through the direct acquisition of BTC, but also through the attraction of new investors thanks to their media coverage.
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Additionally, the Federal Reserve's (FED) recent pivot in monetary policy toward a more accommodative approach could create a favorable environment for the valuation of risk assets.
However, even in an unfavorable context for risk assets, Bitcoin could benefit thanks to its anti-fragility characteristics. Robbie Mitchnick, head of digital assets at BlackRock, recently said on Bloomberg that Bitcoin should not be seen as a risk asset, due to its similarities to gold.
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Source: SoSoValue
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
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