Cryptocurrency ETFs are once again setting records for inflows, but the market is showing signs of quiet. This article examines the current state of BTC and ETH ETFs, as well as the general position of the cryptocurrency market.
Major Inflows into Bitcoin and Ethereum ETFs
Blackrock and Fidelity continue to increase their Bitcoin and Ethereum ETF volumes. In one day, Blackrock attracted $164.64 million to its IBIT ETF, while Fidelity recorded $66.05 million in its FBTC. On the Ethereum side, Blackrock's ETHA brought in $53.21 million, with Fidelity's FETH adding $8.9 million. Grayscale is also participating, garnering $6.22 million through its Mini Trust. Meanwhile, outflows from other products remain minimal.
Concerns and Worrying Signals in the Crypto Market
Despite the growth in ETFs, real market activity is declining. According to Glassnode, there is a 'summer lull' occurring, with trading volumes decreasing. Analyst Alex Kuptsikevich notes that BTC is facing resistance along the way to $110,000, while seller interest remains high. Spot trading volumes for Bitcoin have hit their lowest point in a year, signaling potential stagnation.
Overall Overview of the Current Situation in Cryptocurrencies
The current state of the crypto market shows conflicting signals. Even though total market capitalization rose by 1.8% over the week, it fell by 0.6% over the last 24 hours, reaching $3.35 trillion. However, Ethereum continues to draw attention with $226 million inflow for the week, while Solana and XRP have seen $22 million and $11 million, respectively. The SEC's issues with Solana ETF approvals add further risks. Bitcoin, remaining at $108,700, appears to take on the role of a safe haven.
Despite the significant inflows into Bitcoin and Ethereum ETFs, the current market situation raises concerns due to declining trading volumes and signs of stagnation. The question remains whether current trends are sustainable or if they hide deeper issues within the market.
