Key Takeaways
- Bitcoin prices struggled to stay above $70,000 despite significant ETF inflows.
- Hedge funds and commodities traders are engaging in price arbitrage between ETFs and CME bitcoin futures.
- Robinhood announced a $200 million acquisition of Bitstamp to expand its crypto business.
- Semler Scientific is following Microstrategy’s lead by acquiring bitcoin as a treasury asset.
- Market watchers are awaiting CPI data and Fed Chair Jerome Powell’s remarks for insights on potential rate cuts.
Bitcoin ETFs See Second-Strongest Daily Flows
Last Tuesday, U.S. spot bitcoin ETFs experienced their second-highest daily net inflows, totaling $886.6 million. Fidelity’s Wise Origin Bitcoin Fund led the inflows with $378.7 million, followed by BlackRock’s iShares Bitcoin Trust with $274.4 million. This marked sixteen consecutive days of net inflows, now extended to nineteen days. The market saw nearly $1.6 billion in inflows from Tuesday to Thursday alone. The cumulative net inflows for U.S. Bitcoin ETFs have reached $15.6 billion, with IBIT surpassing Grayscale Bitcoin Trust as the largest player in the market.
Bitcoin Price Movement and Arbitrage Trends
Bitcoin prices remained rangebound last week, briefly surpassing $71,000 before dropping below $70,000. Despite strong ETF inflows, the price has not reached the previous high of $73,000. Traders are now focusing on arbitrage opportunities, with hedge funds and commodity traders buying spot bitcoin ETFs while selling CME futures to profit from the premium in futures prices.
Robinhood’s Acquisition of Bitstamp
Robinhood’s acquisition of Bitstamp for $200 million signifies its expansion into the global digital assets market. Bitstamp’s broad regulatory coverage and diverse asset offerings position Robinhood to compete with industry giants like Binance and Coinbase. This move aims to strengthen Robinhood Crypto’s institutional presence and drive international growth.
Semler Scientific’s Bitcoin Strategy
Semler Scientific recently announced a $17 million bitcoin purchase, adding to its existing holdings. This follows a $40 million bitcoin acquisition in May, which boosted the company’s stock value. With a total of 828 bitcoins, Semler is strategically integrating bitcoin into its corporate strategy, aligning with the trend of public companies holding significant bitcoin reserves.
Market Expectations This Week
Market watchers are closely monitoring CPI data and Fed Chair Jerome Powell’s upcoming remarks for insights into potential interest rate adjustments. Inflation data and the Fed’s stance on rates can impact bitcoin prices and market sentiment. Additionally, meme-based tokens on Solana, backed by celebrities like Iggy Azalea, continue to attract investor attention, showcasing the volatile nature of small-cap crypto assets.