Bitcoin ETFs Extend Inflow Streak to Third Week, but Momentum Is Fading
US-listed spot bitcoin ETFs netted 33.79 million dollars in net inflows for the week ending July 24. This third consecutive green week marks a first since early May. However, massive end-of-week outflows nonetheless dampened the emerging optimism.
In brief
- US spot bitcoin ETFs post a third consecutive positive week, with $33.79M in net inflows.
- The $465M outflows recorded on Thursday and Friday almost erased the week’s gains.
- BlackRock alone captured nearly $415M of these redemptions through its IBIT fund.
A lukewarm breath of air rather than a comeback
Three weeks of positive flows, it’s been a while. Bitcoin ETFs had not lined up such a streak since early May, just before the record outflows of June came to dampen hopes of recovery.
That said, momentum shows tangible signs of fatigue. Compared to the 197 million dollars garnered the previous week and the 75.67 million from the first week of July, the 33.79 million of this third week resemble more a trickle than a tidal wave. The momentum erodes, week by week.
The crypto analytics firm BRN delivered a blunt assessment in a note to CoinDesk:
After heavy outflows in May and June, the July repair phase brought relief, but institutional demand remains cautious.
Everything changed in 48 hours. On Wednesday, July 22, funds still showed comfortable net inflows. The next day, $225.2 million left bitcoin ETFs. On Friday the 24th, another $240.1 million followed suit. SoSoValue compiled the numbers: $465 million vanished in the last two sessions of the week.
BlackRock bore the full weight of this reversal. Its IBIT product concentrated nearly $415 million of redemptions, nearly all of the outflows. The Wall Street giant, dominating the bitcoin ETF market since their January 2024 launch, remains capable of tipping weekly statistics alone. When IBIT sneezes, the whole segment catches a cold.
Bitcoin stuck between profit-taking and a jittery Nasdaq
Flows and price told the same story. Peaking at a July high above $66,500 on Tuesday the 22nd, bitcoin then slid below $64,000 on Friday. Profit-taking played its role, but the real culprit was equities.
The Nasdaq 100 suffered a rout in semiconductor stocks, a barometer for the artificial intelligence industry. This chill on tech stocks mechanically weighed on risk assets, and bitcoin was no exception.
On Monday, July 27, the price hovered around $65,000, up slightly by 0.9%. A timid tremor, reflecting the general mood: investors oscillate between hope for a strong summer and fear of a new equity market downturn.
Bitcoin ETFs have just posted their best streak since spring, but momentum erodes each week a bit more. The $465 million air pocket in 48 hours, mainly attributable to the BlackRock behemoth, reminds that institutional demand recovery remains fragile. With a pressured Nasdaq and profit-taking lurking at every peak, bitcoin ETF dynamics are navigating uncertain waters.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.