Bitcoin (BTC) has dropped almost 20%, but U.S. spot BTC ETFs have been strong and have been able to profit from the drop, even though the biggest digital asset has gone below the $55,000 mark.
BTC dropped a lot in June, going from $71,900 to $58,400. The bad mood continued into July, when BTC hit a new low of $53,400 before rising to about $58,000 at the time of publication.
BTC ETFs’ Resilience and Investor Sentiment Amid Market Volatility
An ETF expert at Bloomberg named the recent drop “nasty,” but he also pointed out that BTC ETFs have kept their Assets Under Management (AUM) and Year-To-Date (YTD) flows steady.
‘Bitcoin had a 20% drawdown in a month. Pretty nasty. I would have been impressed if 90% of Aum hung in there, but it was over 100% as they saw inflows.kept the all-important YTD net number at +$15B.’
Balchunas says that BTC ETFs have done well during market downturns, similar to investments that people from older groups (called “boomers”) like. Data from Farside Investors support this idea. YTD flows for these ETFs rose to $15 billion after falling to $14.3 billion for a short time in late June.
Although there were positive flows, Soso Value data showed that BTC ETFs’ AUM dropped by almost $10 billion during recent drawdowns, from $62.5 billion to below $50 billion. However, things have since gotten better with new inflows. For example, on Monday and Tuesday, BTC ETFs received $294.9 million and $216.3 million, respectively, showing that investors are once again confident in the products despite market volatility.
Some people who follow the market aren’t sure how important ETFs are to the more significant picture of BTC’s price changes. Some people say that these money moves might be because hedge funds are shorting BTC futures markets through cash and carry trades.
Jim Bianco, a famous market expert, didn’t agree with the idea that most people who own BTC ETFs are older buyers. So many of them are “self-directed investors” instead of boomers, he said.
BTC has gained 5.8% this week and is now selling just above $59,000, according to the most recent report. According to market research, BTC needs to break through trendline resistance and take back the range-low of $60,800 in order to solidify its rebound.
Technical indicators like the Relative Strength Index (RSI) and the Directional Movement Index (DMI) point to a possible bullish trend. However, the RSI is still below normal, and the DMI has not yet confirmed a positive crossover, which means bullish traders should be careful.
