Market Musings - Return of the Flows

Welcome to Market Musings, a weekly publication that aims to keep our readers up-to-date on the most important and timely crypto market happenings. We’ll be iterating on this product as we go along, so please give us any feedback or suggestions for topics you’d like to see make an appearance in this new weekly note.

BTC Spot ETFs — Return of the King (IBIT)

Reminder, Delphi’s BTC Spot ETF Flow Tracker can be found here.

Two weeks ago in our second edition of Market Musings, we began to notice the first signs of BTC price & ETF flow recovery. Specifically, we started to notice BTC price recover on the back of extremely negative ETF outflow data. Remember, when price reacts positively to bad news/data (or vice-versa), it is usually an early signal.

As ETF inflows started to return, BTC began to rally more. These early signs of recovery came in stark contrast to everything we had seen since March, when ETF flows were anemic at best, destroying BTC momentum & crypto bulls in the process. The picture was starting to get better.

And last week, we highlighted just how good the picture had become for bulls, “with ETFs reporting several days of impressive inflows.”

It is also important to remember that this period was the first time in over a month that ETFs had reported 5 consecutive days of positive flows. And with these positive flows, BTC rallied, pushing towards range high territory around $70K-$72K.

Since then, we have seen the return of ETF inflow consistency, extending the streak to 10 consecutive days of inflows. This consistency has been very supportive for BTC price, as bulls have propelled the orange coin back to within striking distance of another all time high breakout.

It is hard to overstate the importance that the markets have given these products with respect to