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Bitcoin ETFs draw $197M, snap 8-week outflow streak
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Bitcoin exchange-traded funds (ETFs) listed in the United States have snapped an eight-week streak of net outflows, recording $197.4 million in inflows for the week ending Friday. This marks the first weekly inflow since mid-May, according to data from Farside Investors. The reversal comes after two months of sustained selling pressure that saw over $8.26 billion exit spot Bitcoin ETFs since May 11. Analysts, however, caution that it is too early to declare a definitive recovery in institutional demand for Bitcoin.
The largest contributor to the week's inflows was the BlackRock iShares Bitcoin Trust ETF, which attracted $291.9 million. This was partially offset by outflows from other major funds, including the Grayscale Bitcoin Trust ETF, the Fidelity Wise Origin Bitcoin Fund, and the ARK 21 Shares Bitcoin ETF. The net inflow of $197.4 million is modest compared to the massive outflows of the previous eight weeks, underscoring lingering uncertainty among investors.
Market observers point to potential regulatory catalysts as a reason for the shift. Jeff Yew, founder and CEO of Monochrome Asset Management, suggested that institutional confidence is growing around the possible passage of the CLARITY Act in the United States next month. "This could be an early indication that institutions are beginning to position ahead of greater regulatory certainty," Yew told Cointelegraph, noting that long-term capital allocators often seek such clarity.
However, other analysts remain cautious. Markus Thielen, founder and CEO of 10x Research, highlighted that ETF and stablecoin outflows, along with seasonal patterns in August and September, continue to pose headwinds. "Without flows still pronounced and ETF flows yet to meaningfully pick up, even after Bitcoin's 9%+ jump, the headwinds remain," Thielen said. He also pointed to a recent pattern where Bitcoin performs better in the first half of the month before consolidating later.
Additional perspectives suggest that Bitcoin may be entering the latter stages of its bear market. Jamie Coutts, chief crypto analyst at Real Vision, noted early technical signs of easing selling pressure. "I think we're getting through most of the bear market action," Coutts said, though he acknowledged that it is not yet over. In contrast, Russell Thompson, chief investment officer at Hilbert Capital, believes Bitcoin remains in a downcycle and could hit a low around October.
The positive trend extended to Ether ETFs, which also broke an eight-week outflow streak with $84.42 million in net inflows for the same period, led by BlackRock and Fidelity's Ether funds. However, these inflows remain small relative to the $1.2 billion in net outflows since May 11. Looking ahead, the sustainability of these inflows will depend on regulatory developments and broader market conditions, with many analysts expecting continued volatility in the near term.
