Bitcoin Spot ETF Sees $170.1 Million Inflow, Are Institutions Back?

▲ Bitcoin (BTC) Exchange Traded Fund (ETF) ©Coinreaders

Although $170.1 million has flowed back into Bitcoin (BTC) spot ETFs, it is premature to conclude that institutional demand has recovered, as 65.5% of the funds were concentrated in a single product. iShares Bitcoin Trust (IBIT), a representative product, has seen a net outflow of $3.91 billion over the past three months, with its price remaining at $36.76, 48.8% lower than its 52-week high.

According to investment specialized media TradingNews on August 5 (local time), a total of $170.1 million flowed into 12 US Bitcoin spot ETFs on August 3. Funds entered 7 products, and no product recorded a net outflow, but IBIT accounted for $111.4 million, or 65.5% of the total. The remaining 6 products had a total inflow of $58.7 million. Compared to Bitcoin's market capitalization of $1.33 trillion, the inflow on this day was only 0.013%, not enough to dictate the price.

This rebound came immediately after a net outflow of $265.4 million occurred on July 31. At that time, no products saw fund inflows, and $122.7 million alone flowed out from IBIT. Based on the last 5 trading days, IBIT's net inflow turned to $154.5 million, but over one month, there was a net outflow of $1.83 billion, and over three months, $3.91 billion. The media assessed that the short-term inflow only accounts for 8.4% of the outflow over the past month, suggesting that fund outflow has merely stopped, not that the trend has reversed.

Since its launch in January 2024, IBIT has attracted a cumulative $60.35 billion, but its current net assets are tallied at $47.08 billion. The difference between inflows and net assets is approximately $13.3 billion, representing an unrealized loss equivalent to 22% of the invested capital. The price is $36.76, 48.8% lower than its 52-week high of $71.82 and 11.9% higher than its low of $32.84. However, it maintains market dominance by securing high liquidity based on an annual management fee of 0.25% and an average daily trading volume of 35.49 million shares.

Future trends depend on US employment figures and interest rate forecasts. Private sector employment in July increased by only 44,000, falling short of market expectations of 75,000, and the probability of a September interest rate hike decreased from 67% to approximately 57%. Bitcoin is attempting to break above its 50-day exponential moving average (EMA) of $64,587 from $64,196; if successful, $67,025 is presented as the next resistance level. Conversely, if employment figures revive tightening concerns, $62,000 could be tested again. Futures open interest stands at $48.61 billion, but 24-hour liquidations are only $43.76 million, suggesting that macroeconomic variables, rather than current ETF funds, are driving price direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*