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Blockchain & Crypto

Bitcoin trading trends expose significant influence of ETFs

Benchmark cryptocurrency bitcoin (BTC) has somewhat stabilised since plummeting consistently throughout June.

Although it dipped 1.4% against the dollar today, this follows a bullish weekend where the BTC/USD pair rallied over 3% before holding onto these gains on Monday.

However, bitcoin remains nearly 9% down month on month, with price performance hampered by mixed trends in the spot bitcoin exchange-traded fund scene.

It was hovering below $62,000 at the time of writing.

Bitcoin price chart

Bitcoin’s poor month-on-month performance – Source: tradingview.com

“BTC spot ETFs saw neutral flows last week, with a $37 million outflow,” noted Matteo Greco, research analyst at Fineqia International Inc (CSE:FNQ, OTC:FNQQF).

“The net outflow occurred entirely on Monday, amounting to about $175 million, followed by four days of slightly positive flows, breaking a streak of seven consecutive trading days with net outflows.

Total ETF inflow since inception is now $14.5 billion, with cumulative trading volume surpassing $300 billion, reaching approximately $311.8 billion.

Trading trends are exposing the “significant influence” of bitcoin ETFs, reckons Greco.

“From January to June 2024, weekend trading volume accounted for only 16% of the total, the lowest ever recorded for this period (H1 of a year).

“This indicates increased activity from traditional finance investors, with trading volume concentrated during Monday to Friday and particularly strong during US market hours, decreasing after the US market closes.”