Investor enthusiasm for U.S.-listed spot bitcoin $BTC$78,473.65 exchange-traded funds (ETFs) has surged in recent weeks, yet the overall net flows for this year remain negative.
An impressive August saw the influx of $3.52 billion in new investments, followed by a robust $770.15 million so far this month, as reported by data firm SoSoValue. Although this upward trend offers optimism to investors that the market’s recent struggles might be behind, the wider picture indicates that ETFs are still trailing for the year.
Despite the current positive streak, these funds have seen a decline of approximately $1 billion in investor capital year-to-date. The main reason for this persistent shortfall is the severe withdrawal of institutional funds during May and June, which saw alarming outflows. June alone accounted for an astonishing $4.51 billion in losses, completely negating the progress made in March and April. As a result, pro-investors have more work ahead to get ETFs back to even for the year regarding capital flows.
“The critical challenge now is whether these inflows can endure the upcoming CPI report and Treasury buyback this week,” analysts from crypto exchange Bitfinex noted in an update to CoinDesk.