"What Happened to Bitcoin ETF?" Newsletter: BlackRock Doubles Down - Financial Giant Increases IBIT Stake

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Welcome to "What Happened to Bitcoin ETF?”

In this week's edition, we explore the key highlights from June 24th to June 28th. We provide a concise and engaging analysis of the Bitcoin ETF market and review the overall performance of the Bitcoin market during this period.

Weekly Bitcoin ETF in Numbers

• Total AUM of Bitcoin ETFs (as of June 28th):

  $52,044,392,921 (Last week: $55,652,430,428)

  ₿866,412 (Last week: ₿867,329)

• Total Weekly Net Flow (June 24th~28th):

  -$3,534,580,690 (Last week: -$1,670,160,411)

  -₿928 (Last week: -₿8,689)

• Top Weekly Performer:

  BlackRock (IBIT): +₿1,366

• Worst Weekly Performer:

  Grayscale (GBTC): -₿2,744

1/ Total AUM and ETF Price Dynamics:

Weekly AUM Overview:

As of June 28th, the total Assets Under Management (AUM) stood at $52,044,392,921, down $3,608,037,507 from the previous week's $55,652,430,428.

The amount of Bitcoin held by ETFs decreased from ₿867,329 to ₿866,412 during the same period.

Bitcoin's spot price also saw a decline of 1.66%, dropping from $62,860 to $60,924. However, there was a notable rebound of 3.79% on June 30th and July 1st, pushing the price back up to $63,229.

This recent strong price rebound can be attributed to easing investor sentiment, likely influenced by last week's May PCE index indicating cooling inflation, despite strong consumer spending and increasing incomes.

🇭🇰 Hong Kong ETF AUM Overview:

As of June 28th, the total Assets Under Management (AUM) was $212,685,000, down from $250,636,000 the previous week.

The amount of Bitcoin held by the three Hong Kong Bitcoin ETFs was ₿3,463, also down from ₿3,861 a week ago.

There is not much news on Hong Kong Bitcoin ETFs as AUM keeps shrinking, coinciding with Bitcoin price diminishing 10% over the past month.

2/ BTC Holdings Weekly Flow:

Ending Holdings on June 28 (WoW Change):

• IBIT (BlackRock): 306,979 BTC (+1,366 BTC)

• GBTC (Grayscale): 275,758 BTC (-2,744 BTC)

• FBTC (Fidelity): 167,486 BTC (+111 BTC)

• ARKB (Ark 21Shares): 46,026 BTC (+440 BTC)

• BITB (Bitwise): 37,524 BTC (+236 BTC)

• HODL (VanEck): 9,927 BTC (-57 BTC)

• BRRR (Valkyrie): 8,372 BTC (+0 BTC)

• BTCO (Invesco Galaxy): 6,955 BTC (+10 BTC)

• EZBC (Franklin Templeton): 5,887 BTC (-290 BTC)

• BTCW (WisdomTree): 1,320 BTC (+0 BTC)

• DEFI (Hashdex): 178 BTC (+0 BTC)

Total: 866,412 BTC (-928 BTC)

🇭🇰 Hong Kong ETF Holdings on June 28 (WoW Change):

• ChinaAMC (9042): 1,597 BTC (-392 BTC)

• Harvest Global (9439): 742 BTC (+10 BTC)

• Bosera Hashkey (9008): 1,124 BTC (-15 BTC)

Total: 3,463BTC (-398 BTC)

• Note: All data sources are from the Bitcoin ETF Fund Flows.

3/ Looking Ahead:

BlackRock's Bitcoin ETF Sees Zero Inflows as It Buys IBIT Shares Through Its Own Funds

BlackRock disclosed the acquisition of 43,000 shares of the iShares Bitcoin ETF for its Global Allocation Fund, making it the third internal fund to do so.

Despite positive total inflows into spot Bitcoin ETFs earlier this week, the BlackRock Bitcoin ETF IBIT registered zero inflows for the fifth consecutive trading day. On June 27, net inflows in spot Bitcoin ETFs reached $11.7997 million, while Grayscale’s GBTC saw $11.4 million in outflows, totaling $18.5 billion in outflows since inception.

Analysts believe that the zero inflows into BlackRock’s IBIT are not a major concern, as BlackRock continues to buy IBIT shares through its other funds. This marks the third internal fund from BlackRock to seek Bitcoin exposure through the IBIT ETF.

Institutional interest in Bitcoin ETFs may soon return, partly due to the Fed's anticipated commitment to lower interest rates, potentially starting from the September FOMC meeting. Additionally, the spot Ethereum ETF is expected to launch next week around July 2-4, likely attracting significant capital. Meanwhile, VanEck has filed for a spot Solana ETF, further expanding options for investors.

4/ 🔥What’s Hot This Week?:

Bitcoin Braces for Volatility Amid Economic Uncertainty

This week, the spotlight falls on Bitcoin as traders anticipate significant price fluctuations in response to ongoing uncertainties in U.S. economic policy. Recent data indicates that the U.S. real gross domestic product (GDP) grew at a modest rate of 1.4% annually in the first quarter of 2024, a sharp deceleration from the previous quarter's 3.4% growth. This slowdown, coupled with a slight dip in the personal consumption expenditures index in May, hints at a potential economic cooling.

Key Events to Watch

• Federal Reserve's Moves: As economic indicators suggest a cooling, all eyes are on the Federal Reserve's next moves. With the Federal Open Market Committee meeting scheduled for July 30-31, market participants are keenly awaiting further clues on monetary policy, especially regarding interest rates. Currently, futures traders are betting on two rate cuts by the end of the year, which could influence Bitcoin's attractiveness as an alternative investment.

• Bitcoin's Reaction to Economic Signals: Historically, Bitcoin has often been seen as a safe haven during economic slowdowns. This week, analysts predict that if traditional markets show signs of weakening, Bitcoin could benefit as investors look for stable value stores. However, opinions are divided, with some experts forecasting a period of low volatility and consolidation for Bitcoin in July.

Market Sentiment and Predictions

• Investor Strategies: As the U.S. economy shows signs of slowing, and with potential regulatory developments on the horizon, investors might increasingly view cryptocurrencies like Bitcoin as viable investment alternatives. This shift could be driven by the anticipation of cheaper borrowing rates and a search for higher returns in risk assets.

• Seasonal Trends: Historically, the third quarter marks a period of lower volatility in the markets, as many key decision-makers in the U.S. are on holiday. However, with the upcoming U.S. elections, some analysts believe that Bitcoin might find its next major catalyst for movement as the political climate heats up.

Stay tuned to see how Bitcoin navigates the complex interplay of economic indicators and market sentiments in this potentially volatile month.

5/ This Week’s Bitcoin Mindset:

Trust in the Power of Time

Warren Buffett's success story offers us a crucial lesson. Most of his immense wealth was accumulated after the age of 60. This demonstrates that the key to investing isn't short-term high yields, but long-term consistency.

We can view Bitcoin in a similar light. Over the past 11 years, it has outperformed all other asset classes 8 times, and this year alone it has seen a 60% increase. This suggests that Bitcoin is an attractive asset from a long-term investment perspective.

The true power of investing lies in 'time' and 'compound interest'. As Morgan Housel said, "Maintaining a decent rate of return over a long period produces far better results." Therefore, 'patience' is crucial for Bitcoin investors. The key is to invest steadily from a long-term perspective, without being swayed by short-term fluctuations.

In conclusion, the secret to successful Bitcoin investment is simple: buy, hold, and believe in the power of time. The magic of compound interest will make your investment shine.

Remember, as with Warren Buffett's wealth accumulation, the most significant gains often come later. So, resist the urge to sell your Bitcoin. Allow time and compound interest to work their wonders on your investment.

6/ 🐦 Hot Tweet of the Week

1) Cryptographic Wealth: When Your Lambo Sports a SHA-256 Vanity Plate

2) Bitcoin: Outshining Gold as the Digital Age's Premier Store of Value

🍫CRYPTO CRUMBS ON THE TRAIL 🍫

Dive into this week's crunchy bites of important news, serving up the freshest updates and insights from the crypto world.

Here's what's on the menu:

1. 3 things that can spoil a potentially bullish July for Bitcoin

   BTC price is likely to face headwinds in July from Mt. Gox repayments that could result in a "bull pennant" breakdown on the charts.

2. Bitcoin's Potential Rebound May Face Resistance at $65K, OnChain Analysis Shows

   Short-term holders wallets sitting on loss may liquidate holdings near $65000, capping a renewed upswing in bitcoin's price.

3. Milei Reveals New Economic Phase for Argentina: Zero Monetary Issuance – Economics Bitcoin News

   Javier Milei has revealed the new policies that will be applied to cement the economic victories he has achieved in Argentina.

4. Bitcoin: 75% of Traders Betting on an Increase

   Amid a global economic storm, the Bitcoin market continues to show surprising resilience. A new study reveals that an overwhelming majority...

5. Michael Saylor Breaks Silence on Bitcoin Returning Above $63,000

   MicroStrategy co-founder has addressed the Bitcoin community on the recent BTC price recovery but analysts still expect a sell-off coming.

That’s it for today; stay tuned for more updates and insights in our next edition!

Stay charged,

SmashFi Team

P.S. - Follow me on X (@brianhoonjong) for daily doses of insightful updates on Bitcoin ETFs and beyond! 🚀🐦

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“What Happened to Bitcoin ETF?” Newsletter: Dissecting the daily crypto craze with sharp insights and electrifying updates.

Disclaimer: This newsletter is for the brainy and the brave. It's for informational purposes only and not a substitute for investment advice. Always do your own research.