Bitcoin ETFs Attract $2 Billion, But BTC Price Stalls
On June 4, the category for US spot bitcoin ETFs saw a net inflow of $887 million, the second-highest amount for this segment in a single day since its launch in January. In total, the 11 funds gathered around $1.8 billion in assets between June 3 and June 7. The BlackRock iShares Bitcoin Trust, now the largest bitcoin ETF, attracted $948 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) welcomed $679 million.
Growing Trading Volumes
Trading volumes for crypto exchange-traded products reached $12.8 billion last week, a 55% increase from the previous week. Despite this strong inflow and trading volumes, the price of BTC, however, lags behind.
Macro-Economic Factors at Play
The price of BTC rose to nearly $72,000 on Friday but later retreated from its peak of over $73,000. A drop in US employment data on Friday, which showed the US economy added 272,000 jobs in May, contributed to the downward pressure on the BTC price. Additionally, macro-economic conditions also play a role, with the European Central Bank cutting interest rates for the first time in five years. All of this points to some market caution, with analysts looking to the upcoming FOMC meeting of the Federal Reserve for further direction.
Future Expectations
Analysts, including Galaxy Digital CEO Mike Novogratz, remain optimistic about the future of bitcoin. Some predict that bitcoin could reach $100,000 by the end of the year, partly due to increasing interest in ETFs and potential interest rate cuts in the US.