Investor appetite for U.S.-listed spot bitcoin exchange-traded funds (ETFs) has surged in recent weeks, yet cumulative flows for 2024 remain deeply negative.
Strong Summer Inflows Fail to Offset Spring Selloff
Data from SoSoValue shows a dramatic turnaround in August, which attracted a massive $3.52 billion in fresh capital. Momentum carried into September, adding another $770.15 million through the early part of the month. While the winning streak signals that the worst of the mid-year market doldrums may be over, the broader arithmetic reveals a persistent deficit.
Despite the recent rally, the funds are still down roughly $1 billion on a year-to-date basis. The primary driver of this lingering shortfall is the brutal two-month stretch in May and June, when institutional capital exited the funds at an alarming pace. June alone wiped out a staggering $4.51 billion, completely erasing the gains accumulated during March and April. Consequently, bulls still have significant ground to cover before ETF flows break even for the year.
Macro Catalysts Loom as Critical Test
Market participants are now focused on whether the positive momentum can withstand upcoming macroeconomic events. “The key test now is whether those inflows survive this week’s CPI and Treasury buyback,” analysts at crypto exchange Bitfinex said in a note to CoinDesk.
