"What Happened to Bitcoin ETF?" Newsletter: Institutions Return with Significant 3,690 BTC Weekly Inflow

Welcome to "What Happened to Bitcoin ETF?”

In this week's edition, we will cover the key highlights from July 1st to July 5th. Please note that the US stock market was closed on July 4th in observance of Independence Day. 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 July 5th):

  $49,033,717,491 (Last week: $52,044,392,921)

  ₿870,078 (Last week: ₿866,388)

• Total Weekly Net Flow (July 1st~5th):

  -$3,027,196,044 (Last week: -$3,534,580,690)

  +₿3,690 (Last week: -₿952)

• 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 the latest report, the total Assets Under Management (AUM) have decreased to $49,033,717,491 from the previous week’s $52,060,913,536, breaking the $50 billion level for the first time since last May 2nd. This significant shrinkage in AUM is primarily due to a sharp decline in the Net Asset Value (NAV) of ETFs, driven by a nearly 10% drop in the spot Bitcoin price over the same period.

In contrast, the total weekly AUM in Bitcoin holdings last week was 870,078 BTC, which is 3,690 BTC higher than the previous week. This increase indicates that investors are returning to Bitcoin ETFs, suggesting a belief that Bitcoin prices may have bottomed out.

🇭🇰 Hong Kong ETF AUM Overview:

As of the latest report, the total Assets Under Management (AUM) for the three Hong Kong Bitcoin ETFs amounted to $216,606,000 USD, up from the previous week’s $212,685,000 USD. This increase is attributed to a fresh 530 BTC inflow throughout the past week in the Hong Kong Bitcoin ETF market, with the Bosera HashKey Bitcoin ETF alone bringing in 514 BTC.

The total Bitcoin held by Hong Kong Bitcoin ETFs is now 3,993 BTC, nearing 4,000 BTC for the first time in its history. This trend indicates growing institutional interest in buying Bitcoin during the dip, occurring in both Hong Kong and the U.S.

2/ BTC Holdings Weekly Flow:

Ending Holdings on July 5 (WoW Change):

• IBIT (BlackRock): 307,146 BTC (+168 BTC)

• GBTC (Grayscale): 274,249 BTC (-1,509 BTC)

• FBTC (Fidelity): 170,758 BTC (+3,295 BTC)

• ARKB (Ark 21Shares): 46,465 BTC (+439 BTC)

• BITB (Bitwise): 38,603 BTC (+1,079 BTC)

• HODL (VanEck): 10,068 BTC (+141 BTC)

• BRRR (Valkyrie): 8,371 BTC (-1 BTC)

• BTCO (Invesco Galaxy): 7,003 BTC (+48 BTC)

• EZBC (Franklin Templeton): 5,916 BTC (+29 BTC)

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

• DEFI (Hashdex): 178 BTC (+0 BTC)

Total: 870,078 BTC (+3,690 BTC)

🇭🇰 Hong Kong ETF Holdings on July 5 (WoW Change):

• ChinaAMC (9042): 1,613 BTC (+16 BTC)

• Harvest Global (9439): 742 BTC (+0 BTC)

• Bosera Hashkey (9008): 1,638 BTC (+514 BTC)

Total: 3,993 BTC (+530 BTC)

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

3/ Looking Ahead:

Rising Unemployment Rate Signals Potential Fed Rate Cuts, Sparking Optimism in Bitcoin ETF Market

The rising unemployment rate in the U.S., now at 4.1%, is tied for the highest level since October 2021. This unexpected climb is signaling a mild recession that could prompt the Federal Reserve to lower interest rates sooner rather than later. The recent inflow in the Bitcoin ETF market might be another indicator that institutions are betting on a Bitcoin rebound after a six-week, 20% decline from the May peak of $71,000.

Economic conditions are shifting towards a scenario where the Fed might consider a quarter-point decrease in interest rates, which is bullish for Bitcoin. As David Russell, global head of market strategy at TradeStation, remarked, “The job market is bending without yet breaking, which boosts the argument for rate cuts. Things are not too hot and not too cold. Goldilocks is here and September is in play” for a Fed rate cut. Similarly, Jan Hatzius, chief economist at Goldman Sachs, suggested that the current economic data supports the idea that the Fed will cut rates relatively soon, potentially as early as September.

In summary, the current economic trajectory and institutional actions in the Bitcoin ETF market hint at an upcoming period of rate cuts, which could catalyze a significant rebound in Bitcoin’s price.

4/ 🔥What’s Trending Now?:

Hung Parliament in France Complicates Crypto Legislation

France’s recent election has resulted in a hung parliament, posing challenges for the passage of new legislation, including crypto regulations. The New Popular Front, a coalition of left-wing parties, emerged as the largest winner with 188 seats, but fell short of the 289 needed for a majority. President Emmanuel Macron’s Ensemble coalition secured 161 seats, while Marine Le Pen’s far-right National Rally gained 141 seats.

The lack of an outright majority is expected to complicate the formation of new policies. Mark Foster, the EU policy lead at the Crypto Council for Innovation, highlighted that the increased presence of far-left and far-right contingents in the new parliament will make domestic policy development, including on crypto and digital assets, uncertain and difficult. This situation also limits the president’s authority on both the international and European stages.

Despite these political challenges, France has made significant strides in the crypto sector. Last year, the country registered 74 crypto companies, a number projected to increase to 100. Regulators have been actively working to attract more digital asset businesses. Additionally, France has started enforcing the European Union’s comprehensive crypto asset legislation, the Markets in Crypto Asset (MiCA) rules on stablecoins, since the end of June, with the rest of the crypto rules set to go live by the end of the year.

5/ This Week’s Bitcoin Mindset:

Diamond Hands Rejoice: Big Players Keep Accumulating

In the world of Bitcoin, where volatility is the norm and price fluctuations can be nerve-wracking, it’s essential to maintain the diamond hands mentality. Recent data from Santiment highlights a significant trend that should encourage long-term holders: wallets with 10,000+ Bitcoin have seen substantial growth over the past six weeks of market turbulence.

These major players, often comprising exchange liquidity providers, have added a whopping 212,450 BTC to their holdings during this period. This increase represents 1.05% more of the entire Bitcoin supply. Notably, these wallets now hold their most significant amount of Bitcoin in nearly six years, with the last time 10K+ BTC wallets exceeded 3.19 million coins being in November 2018.

This accumulation trend underscores a crucial point: big investors and institutions are taking advantage of the current market conditions to strengthen their positions. For those of us committed to HODLing, this is a strong signal to stay the course. As these significant holders continue to amass Bitcoin, it reaffirms the long-term value and potential of this digital asset.

So, in the face of market dips and price swings, remember that the big players are betting on Bitcoin’s future. Stay strong, keep HODLing, and trust in the enduring potential of Bitcoin.

6/ 🐦 Hot Tweet of the Week

1) Altcoins Crowd Bitcoin’s Space Despite Plenty of Room

2) Ethereum Holders Feeling the Pain in the Bear Market

🍫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. Bitcoin Mining Profitability Rose in June as Market Adjusted for the Halving: Jefferies

   U.S.-listed mining companies produced a greater share of bitcoin in June than May as they brought on new capacity while the network hashrate...

2. Japanese public firm Metaplanet buys another $2.5M of Bitcoin

   Japanese “MicroStrategy” Metaplanet has announced another $2.5M Bitcoin purchase, bringing total holdings to 203734 BTC.

3. Economist Alex Krüger Names Five Catalysts That Could Reignite Bitcoin (BTC) Bullish Momentum

   A widely followed economist believes several catalysts on the horizon could give Bitcoin (BTC) a massive shot in the arm.

4. CryptoQuant CEO Says Bitcoin Bull Market Will Continue Until Next Year – Here’s His Price Target

   Ki Young Ju, the CEO of blockchain analytics platform CryptoQuant, says he's expecting the current Bitcoin (BTC) bull run to last until the...

5. Crypto Trader Says Blue-Chip Altcoin Could Nosedive by 45%, Updates Outlook on Bitcoin

   A closely followed crypto analyst is issuing a warning, saying that one popular altcoin could be due for a significant correction.

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.