WASHINGTON: US-listed spot bitcoin exchange-traded funds recorded a second consecutive week of net inflows after nearly two months of capital flight, raising hopes that cryptocurrencies may be finding a floor.
The 13 spot bitcoin exchange-traded funds (ETFs) attracted US$75.7mil last week, adding to the US$197.4mil they secured the previous week.
That’s despite investors draining US$424.7mil from the funds last Monday after renewed military conflict between the United States and Iran.
The reversal, combined with flows into ETFs tied to ether, the second-largest cryptocurrency, could signal positive sentiment returning to the market, according to Richard Galvin, executive chairman at crypto investment firm DACM.
“I think it is a sign of bottoming,” Galvin said.
“Furthermore, given their size and breadth, the ETFs have become a good read on general sentiment to bitcoin and the sector.
“So an about-face after eight straight weeks, now confirmed across a fortnight, is positive.” — Bloomberg