Welcome to the Friday edition of the Ecoinometrics newsletter.
Every week we bring you the three most important charts on the topics of macroeconomics, Bitcoin and digital assets.
Today we'll cover:
- The Bitcoin ETFs are building momentum.
- ETH vs BTC ETFS, comparing the launch.
- Strong growth for the US economy.
Each topic comes with a small explanation and one big chart. So let’s dive in.
The Bitcoin ETFs are building momentum
If you are discounting what’s going on with the stock market, it seems that everyone is having a good week.
Starting with the Bitcoin ETFs.
The ETFs have just seen their strongest inflows (cumulative flow on a 14-day rolling window) since March. If that kind of trend can be sustained BTC might finally be able to breakout from this price range.
The stronger the inflows per unit of time, the more demand pressure on the pool of liquid coins, the higher the chance we see BTC price surge.
ETH vs BTC ETFS: comparing the launch
The spot Ethereum ETFs had a pretty good week so far.
They just launch and the amount of inflows they have attracted looks good to me.
On the chat below you can see the comparison between:
- The net flows for the Bitcoin ETFs on the first two days when they launched.
- The net flows for the Ethereum ETFs on their first two days this week.
The Ethereum ETFs managed to attract a little over a quarter of the funds Bitcoin attracted at the same stage of their existence.
Given that (as I’ve described here) the Ethereum ETFs aren’t as attractive as the BTC ones, this is a nice surprise.
Let’s see how it goes from there.
Strong growth for the US economy
When I look at the changes in the job market I’m often wondering if the US is moving towards a recession.
But then I see that year-on-year the real GDP of the US (so adjusted for inflation) is a solid +3.1%. And I’m like “hmmm ok, maybe it isn’t so straightforward”.
Actually it never is. If you look at history it is actually not possible to predict the GDP of the next quarter from the GDP of the previous quarter. So a strong print in Q2 doesn’t mean the US economy is set for the rest of the year.
Regardless we did see another example of good news is bad news in the stock market. This is because as usual investors are focused on what the Federal Reserve will do. Anything that might threaten the rate cuts is seen negatively for risk assets.
At the end of the day it always comes back to the outsized role of the monetary policies in the financial markets. No need to fight it.
That’s it for today. I hope you enjoyed this. We’ll be back next week with more charts.
Cheers,
Nick
P.S. We spend the entire week, countless hours really, doing research, exploring data, surveying emerging trends, looking at charts and making infographics.
Our objective? Deliver to you the most important insights in macroeconomics, Bitcoin and digital assets.
Armed with those insights you can make better investment decisions.
