Bitcoin is experiencing a surge in institutional interest with over $530 million flowing into US spot Bitcoin exchange-traded funds (ETFs). Despite this bullish sign, some traders warn that such large inflow days have historically preceded periods of price weakness.
In a recent update on July 23, trader Skew highlighted the risk of a “headline curse” for Bitcoin. He noted that previous instances of substantial ETF inflows have often been followed by market sell-offs. The BlackRock iShares Bitcoin Trust (IBIT), the largest US spot Bitcoin ETF, saw a staggering $526 million in inflows on June 22. This recent influx brings the total ETF net flows for July 23 to $533.6 million, the highest since March.
BTC/USDT chart with peak IBIT inflows. Source: Skew
“Each time IBIT reported mid-high nine-figure inflow days, it occurred around market supply zones,” Skew said. He cautioned that while the inflows are positive, they are not always indicative of sustained upward momentum. Bitcoin was trading around $66,550 at the time of writing, down 1.5% for the day.
US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
Ethereum ETFs Fail to Boost ETH Price
Meanwhile, Ethereum’s new spot ETFs, which began trading on July 23, have failed to generate significant price movement for Ether. The price of ETH is flat on the day, showing only a modest 1.5% increase over the past week. This contrasts sharply with the pre-launch excitement Bitcoin experienced earlier this year.
BTC/USD 1-hour chart. Source: TradingView
“The lack of positive reaction to the Ethereum ETF launch is concerning,” trading firm QCP Capital noted. “The market seems to be waiting to see who will ‘sell the news’ first.” Analysts suggest that it may take several months to gauge the demand and impact of the spot Ether ETFs on the market accurately.
ETH/USD 1-hour chart. Source: TradingView
As Bitcoin and Ethereum navigate these ETF developments, traders and investors will be closely monitoring the market for further signs of price direction and sustainability.
