BlackRock's IBIT finally blinked at the wrong time as Fidelity's FBTC slurps $166M 🌊

U.S.-listed spot Bitcoin exchange-traded funds recorded $221.7 million in net inflows on Thursday, their largest single-day haul in roughly two months, ending a 10-session outflow streak that had drained about $2.73 billion from the products, according to SoSoValue data. The inflow came as Bitcoin ($BTC) reclaimed the $61,000 level after briefly slipping under $59,000 earlier in the week, with the global crypto market cap climbing 2.4% to $2.22 trillion over the past 24 hours, per CoinGecko.

Fidelity's Wise Origin Bitcoin Fund (FBTC) led the rebound with $165.96 million in net inflows, accounting for the bulk of the day's total, while ARK 21Shares Bitcoin ETF (ARKB) added $91.84 million, VanEck Bitcoin ETF (HODL) attracted $4.35 million, and Valkyrie Bitcoin Fund (BRRR) drew $1.7 million, according to Farside Investors. BlackRock's iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF by assets, bucked the trend with $40.43 million in net outflows, extending an 11-session losing streak that has now cost the fund more than $2.2 billion since June 17. ARKB's inflow figure was reported as $91.8 million in some tallies.

The shift followed a weaker-than-expected June U.S. jobs report showing 57,000 nonfarm payrolls added, well below the roughly 110,000 forecast, alongside comments from Fed Chair Kevin Warsh indicating that inflation risks had eased. "The marginal shift in interest rate expectations" had driven prior outflows as the market priced in further rate hikes, Tim Sun, senior researcher at HashKey, said, adding that Thursday's bounce is "only a temporary recovery after the easing of interest rate pressure." Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt that Warsh's comments "improved overall market sentiment," driving inflows to Bitcoin ETFs and sparking Bitcoin's rebound over $61,000. Stephen Wundke, strategy and revenue director at Algoz Technologies, said falling five-year yields and oil prices signal inflation is coming back under control, while "those investors looking for a BTC bottom or recognising oversold assets started to bottom fish."

Altcoin ETFs also posted inflows: U.S. spot Ether ($ETH) ETFs attracted $29.1 million on Thursday after a $14.9 million intake a day earlier, and XRP ETFs returned to net inflows of $6.6 million, ending two consecutive sessions of outflows. The Bitcoin Advanced Net UTXO Supply Ratio chart, cited by analyst Axel Adler Jr., dropped deep into negative territory in recent weeks and printed a green "BUY" signal, the first since November 2022. Bitwise chief investment officer Matt Hougan suggested the market could be nearing a bottom, while the Fear & Greed Index from Alternative.me registered an "extreme fear" reading on Friday.

The rebound closes out June, the worst month on record for U.S. spot Bitcoin ETFs with roughly $4.5 billion in net outflows, and leaves year-to-date net outflows at about $5.4 billion. CryptoOnchain noted that Binance stablecoin netflows averaged negative $126 million per day while funding rates remained positive, a combination historically associated with legacy spot supply hitting the market as smaller participants provided long leverage. Public miners including Riot Platforms, MARA Holdings and Hut 8 Mining Corp. have continued selling BTC to cover operational costs, per AMBCrypto, even as on-chain metrics printed a rare accumulation signal.