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Five Things To Know in Crypto This Week: Spot ETFs Extend Inflow Streak to Five Weeks

By:
Bob Mason
Updated: Jun 8, 2024, 05:10 GMT+00:00

Key Points:

  • US Jobs Report dampens expectations of a September Fed rate cut, impacting the crypto market.
  • The US BTC-spot ETF market extends its net inflow streak to five weeks.
  • Courts put SEC disclosure rules under the spotlight.
Five Things to Know in Crypto This Week

In this article:

Bitcoin (BTC) was up 2.57% to $69,537 from Monday (June 3) to Saturday (June 8). Significantly, BTC climbed to a Friday (June 7) high of $71,912 before sliding to sub-$70,000.

US labor market and services sector data influenced BTC price trends. Weaker-than-expected ADP private payroll and sub-components of the ISM Services PMI fueled investor bets on a September Fed rate cut. Moreover, sentiment toward the Fed rate path drove buyer demand for riskier assets.

However, the US Jobs Report signaled a robust labor market, reducing investor expectations of a September Fed rate cut.

US average hourly earnings increased 4.1% year-on-year in May after a rise of 3.9% in April. Nonfarm payrolls surged 272k after advancing by 165k in April. However, the US unemployment rate increased from 3.9% to 4.0% despite a lower participation rate. The unemployment and participation rate trends cushioned the blow to the global financial markets.

According to the CME FedWatch Tool, the probability of the Fed standing pat in September increased from 45.2% to 49.5% in the week ending June 7.

Despite the shift in sentiment toward the Fed interest rate trajectory, the Nasdaq Composite Index ended the week up 2.38% to 17,133.

The US BTC-spot ETF market extended its total net inflow streak for the fifth consecutive week, signaling sustained demand for BTC.

BTC on target for weekly gains.
BTC Weekly Chart 080624

US BTC-Spot ETF Market Extends Total Net Inflow Streak to Five Weeks

In the week ending June 7, the US BTC-spot ETF market extended its net inflow streak to five weeks.

Weaker-than-expected US economic indicators drove buyer demand for US BTC-spot ETFs in the first half of the week. Total net inflows peaked at $886.6 million on Tuesday (June 4).

While the US Jobs Report affected investor expectations of a September Fed rate cut, the US BTC-spot ETF market showed resilience to the numbers.

According to Farside Investors,

  • Grayscale Bitcoin Trust (GBTC) saw total net outflows of $31.1 million in the week ending June 7. The previous week, GBTC saw total net outflows of $260.6 million.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) had total net inflows of $679.4 million, up from $77.0 million the previous week.
  • ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) reported total net inflows of $130.2 million and $82.8 million, respectively.
  • However, iShares Bitcoin Trust (IBIT) topped the table, with total net inflows of $948.0 million. In the week ending May 31, IBIT had total net inflows of $297.8 million.
  • The US BTC-spot ETF market saw total net inflows of $1,828.5 million in the week ending June 7. The previous week saw total net inflows of $170.9 million.

SEC vs. Ripple Case Leaves XRP Trailing the Broader Crypto Market

From Monday (June 3) to Saturday (June 8), XRP was down 2.71% to $0.4990. There were no SEC vs. Ripple case-related updates to influence buyer appetite for XRP. Nevertheless, XRP trailed the broader crypto market, which advanced by 1.12% to $2,487 billion from Monday to Saturday.

Uncertainty surrounding the SEC vs. Ripple case and SEC plans to appeal against the Programmatic Sales of XRP ruling remained headwinds.

Ripple expects the courts to deliver its verdict for Ripple breaching US securities laws in the coming months. The SEC could appeal against the Programmatic Sales of XRP ruling immediately after the verdict. SEC plans to appeal may also reduce the chances of a US XRP-spot ETF market.

On Wednesday (June 5), Ripple President Monica Long shared her views on an XRP-spot ETF market, saying,

“I think it would make a lot of sense. If you think about it, only XRP and Bitcoin have regulatory clarity on status in the US. XRP has been a top ten crypto asset by market cap and is in the top five if you look at daily traded volume, so I think that would make a lot of sense.”

The comments highlighted the significance of the Programmatic Sales of XRP ruling.

XRP bucked the broader market trend going into the weekend.
XRP Weekly Chart 080624

US Courts Challenge the SEC Stance on Disclosure

On Wednesday (June 5), the US Fifth Circuit vacated SEC rules requiring private fund advisors to provide full disclosures to investors.

The ruling coincided with SEC Chair Gary Gensler targeting the crypto market on disclosure, saying,

“We, the SEC, tomorrow, are turning 90. Happy Birthday SEC, 90. And what President Roosevelt did is he created this Commission to oversee that you, the investors, get the disclosure. And, in the crypto markets, they are not giving you that disclosure.”

The court ruling could give US lawmakers more reason to roll out a US digital asset framework that supports innovation while protecting investors.

Coinbase Contributes $25 Million to Fairshake

On Monday (June 3), Coinbase (COIN) contributed $25 million to Fairshake PAC. According to its website, Fairshake supports US candidates committed to securing the US as the home to innovators building the next generation of the internet.

Last week, Ripple announced its $25 million contribution to Fairshake PAC.

Significantly, Coinbase contributed its $25 million shortly after US President Joe Biden vetoed the SAB 121 resolution.

Coinbase is also battling the SEC in the courts. Investors await a court ruling on the Coinbase Motion for Interlocutory Appeal. If Judge Katherine Failla grants the Motion for Interlocutory Appeal, Coinbase will appeal against the court denying, in large part, the Coinbase Motion to Dismiss (MTD).

A Coinbase win against the SEC would be a boon for the crypto market. Despite the uncertainty about the SEC v Coinbase case, Coinbase rallied 8.07% to $244.16 in the week ending June 7.

COIN enjoyed a breakout week.
COIN Weekly Chart 080624

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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