US-listed spot Bitcoin exchange-traded funds recorded a net inflow of $197.4 million in the week ending July 12, breaking an eight-week streak of outflows that began in May, according to data from Farside Investors. The reversal comes after investors had pulled a total of $8.26 billion from these funds since May 11. Despite the positive weekly figure, analysts caution that it is too early to declare a sustained recovery in institutional demand.
BlackRock leads inflows, others still bleeding
The bulk of the week's gains came from the BlackRock iShares Bitcoin Trust ETF, which attracted $291.9 million in new capital. However, this was partially offset by continued outflows from the Grayscale Bitcoin Trust ETF, the Fidelity Wise Origin Bitcoin Fund, and the ARK 21 Shares Bitcoin ETF. The mixed performance underscores that while some institutional players are re-entering, others remain hesitant.
Analysts split on what the data means
Jeff Yew, founder and CEO of Monochrome Asset Management, suggested the inflow could be an early sign that institutions are positioning ahead of potential regulatory clarity, such as the possible passage of the CLARITY Act in the US next month. "This could be an early indication that institutions are beginning to position ahead of greater regulatory certainty, which is often what long-term capital allocators look for," Yew told Cointelegraph.
On the other hand, Markus Thielen, founder and CEO of 10x Research, pointed to headwinds including stablecoin outflows and seasonal weakness in August and September. "There's also been a pattern over the past few months where Bitcoin performs better in the first half of the month, then consolidates in the latter half. Without flows still pronounced and ETF flows yet to meaningfully pick up, even after Bitcoin's 9%+ jump, the headwinds remain in our view," Thielen said.
Broader market outlook remains uncertain
Real Vision chief crypto analyst Jamie Coutts said last week that Bitcoin could be entering the latter stages of the bear market, based on technical signs that selling pressure is easing. However, Russell Thompson, chief investment officer at Hilbert Capital, believes Bitcoin remains in a downcycle and could hit a low around October. The mixed views reflect the ongoing uncertainty about the direction of the market.
Ether ETFs also snap outflow streak
Spot Ether ETFs listed in the US also broke their eight-week losing streak, posting net inflows of $84.42 million for the week, led by BlackRock and Fidelity's Ether funds. Still, the figure is modest compared with the $1.2 billion in net outflows since May 11. The recovery in both Bitcoin and Ether ETFs suggests a cautious improvement in sentiment, but analysts remain divided on whether it marks a turning point.