Following two successive months of significant losses amounting to billions of dollars, the spot Bitcoin ETFs experienced a turnaround in July; however, the inflows remained relatively modest. Meanwhile, the exchange-traded funds that monitor the performance of the largest altcoin experienced a more favourable month, drawing in over twice the amount of new capital. March and April exhibited a notably bullish trend for the spot BTC ETFs, with these financial instruments drawing in excess of $3 billion. However, the trend shifted dramatically in May when they incurred a loss of $2.43 billion.
June marked a historic low, with investors withdrawing more than $4.5 billion. In total, the net outflows for May and June amounted to nearly $7 billion, with cumulative total flows decreasing from over $58 billion to $51 billion. July commenced on a favourable note, witnessing nearly $200 million in net inflows during the initial full week. Another $76 million was recorded during the second quarter, followed by a more modest $34 million in the third quarter. The trend was evident as the initial high figures steadily decreased, corresponding with the underlying asset’s contentious and erratic price behaviour, ultimately resulting in a rather modest rise over the course of the month. The final week of July experienced a downturn, as investors withdrew $61.53 million from the funds.
Friday proved to be particularly challenging, with total net outflows exceeding $265 million. As such, the month concluded with $172.42 million. On one hand, green finally overcame the red wave; however, the magnitude of the number was insufficient to counterbalance some of the recent losses. The Ethereum ETFs commenced July following a notably challenging two-month period, during which they experienced a loss of $541 million in May and an additional $529 million in June. However, investors demonstrated greater persistence, with actual net inflows for July reaching a commendable $365.17 million, thereby surpassing the BTC ETF flows by more than twofold.
Moreover, the ETH ETFs concluded all four complete weeks of July with positive returns, including the final week, which experienced only a single day of negative performance. Perhaps this investor behaviour is among the reasons behind the significant resurgence of the underlying asset in July. As previously reported, ETH concluded the month with a significant 20% increase, marking its best performance in exactly one year. Attention is now focused on August, a month that has not historically favoured ETH, though there are notable exceptions with significant double-digit gains.