Bitcoin Spot ETFs Slow Down: A Historic Low Since February

As the initial enthusiasm fades, spot Bitcoin ETFs in the United States are experiencing a marked slowdown in their activity. The daily trading volume has reached its lowest level since early February, signaling a wait-and-see period in the crypto market.

 A Market in a Consolidation Phase

The frenzy that followed the launch of spot Bitcoin ETFs seems to be waning. On Monday, the total trading volume plunged to $779.87 million, reaching its lowest level since February 6. This dramatic drop contrasts sharply with the peak of $5.24 billion recorded on August 6.

Augustine Fan, an analyst at SOFA.org, explains this phenomenon: “Market sentiment has remained low since the heavy sell-offs a few weeks ago.”

He also points out the impact of summer vacations and the easing of recession fears, prompting investors to adopt a wait-and-see posture ahead of the Fed meeting in Jackson Hole.

Contrasted Capital Flows between Bitcoin and Ethereum

Despite the decline in trading volume, spot Bitcoin ETFs recorded net inflows of $61.98 million. BlackRock (IBIT) and Fidelity (FBTC) funds particularly benefited from this influx, with $92.68 million and $3.87 million in inflows, respectively. However, these gains were partially offset by significant outflows from other funds, notably $25.72 million for Bitwise’s ETF.

On the Ethereum front, the situation is less rosy. Spot Ether ETFs saw their lowest trading volume since their launch, totaling approximately $124 million. The nine funds recorded net outflows of $13.52 million, mainly due to the Grayscale ETHE fund.

Fan attributes this caution to “a lack of clarity on the legal aspects of staking” and recent controversies surrounding Solana ETFs.

In summary, this period of low activity in spot Bitcoin ETFs reflects a market in search of new catalysts. While Bitcoin maintains a price around $60,000, investors seem to be adopting a cautious approach, waiting for clearer signals before committing further. The evolution of this market in the coming weeks will be crucial in determining the long-term trajectory of these financial instruments.