US Bitcoin ETFs End Two-Month Outflow Trend with $197M Weekly Gain
For the first time since May, US spot Bitcoin exchange-traded funds posted weekly net inflows totaling $197 million, but market experts warn this modest gain may not signal a definitive trend reversal.
Spot Bitcoin exchange-traded funds listed in the United States attracted a net inflow totaling $197.4 million during the trading week that concluded Friday, bringing to an end an eight-week consecutive run of weekly outflows that started back in May.
According to data compiled by Farside Investors, the bulk of the weekly inflow came courtesy of the BlackRock iShares Bitcoin Trust ETF, which alone attracted $291.9 million in fresh capital. These gains were partially counterbalanced by capital withdrawals from the Grayscale Bitcoin Trust ETF, the Fidelity Wise Origin Bitcoin Fund and the ARK 21 Shares Bitcoin ETF.
The reversal of the outflow trend might indicate that institutional appetite for Bitcoin is beginning to stabilize following two consecutive months of persistent selling activity. That said, one market analyst cautioned it's premature to draw definitive conclusions given ongoing ETF and stablecoin outflows plus typical seasonality patterns expected 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.
Markus Thielen, 10x Research founder and CEO
"Without flows still pronounced and ETF flows yet to meaningfully pick up, even after Bitcoin's 9%+ jump, the headwinds remain in our view."
The $197.4 million in weekly inflows appeared relatively small when measured against the $8.26 billion that investors pulled from these funds since May 11.
In an interview with Cointelegraph last week, Jamie Coutts, Real Vision's chief crypto analyst, suggested that Bitcoin may be transitioning into the final phases of its bear market cycle, citing preliminary technical indicators that point to diminishing selling pressure.
I think we're getting through most of the bear market action. It's still not over, clearly. But you know, I think we're approaching at least the second half.
Jamie Coutts, Real Vision chief crypto analyst
However, other market observers believe additional price declines may still lie ahead.
Speaking to Cointelegraph last week, Russell Thompson, who serves as chief investment officer at asset management firm Hilbert Capital, expressed his view that Bitcoin continues to be trapped in a downcycle and could potentially reach its bottom around October this year.
Ether ETFs also break outflow streak
In related developments, spot Ether exchange-traded funds listed in the United States similarly ended their eight-week losing streak, recording $84.42 million in net inflows during the week that concluded Friday, with BlackRock and Fidelity's Ether funds leading the charge.
These inflows appeared modest when compared against the $1.2 billion in net outflows recorded since May 11.