Bitcoin ETFs Finally Get a Day Off From Bleeding — $221.7M Says 'Welcome Back' 💰

U.S. spot Bitcoin ETFs pulled in $221.7 million in net inflows on Thursday, their largest single-day haul in roughly two months, snapping a 10-session streak of net outflows that had drained about $2.73 billion from the funds, according to SoSoValue data. The reversal coincided with Bitcoin ($BTC) reclaiming the $61,000 level after falling to a 21-month low below $58,000 earlier in the week, per CoinGecko. The global crypto market cap climbed 2.4% to $2.22 trillion over the past 24 hours. June had been the worst month on record for U.S. spot Bitcoin ETFs, with net outflows totaling about $4.5 billion.

Fidelity's Wise Origin Bitcoin Fund (FBTC) led Thursday's rebound with $165.96 million in net inflows, accounting for roughly 75% of the day's total, according to Farside Investors and SoSoValue data. ARK 21Shares Bitcoin ETF (ARKB) followed with $91.84 million, while the VanEck Bitcoin ETF (HODL) and Valkyrie Bitcoin Fund (BRRR) attracted $4.35 million and $1.7 million, respectively. BlackRock's iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF by assets, posted a $40.43 million net outflow, extending a losing run dating to mid-June that has cost the fund more than $2.2 billion across 11 sessions.

The rebound was tied to softer signals from the U.S. economy and a shift in tone at the Federal Reserve. The government's June jobs report showed 57,000 nonfarm payrolls added, well below the roughly 110,000 forecast, while Fed Chair Kevin Warsh indicated that inflation risks had eased, cooling bets on further rate hikes and pulling the dollar back. Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt that Warsh's comments "improved overall market sentiment," driving inflows to Bitcoin ETFs and sparking Bitcoin's rebound over $61,000. Tim Sun, senior researcher at HashKey, said the turn reflected "the marginal shift in interest rate expectations," adding that persistent outflows had reflected the market's "pricing-in of further rate hikes," which lifted the dollar and real yields against non-yielding Bitcoin, while the weak payrolls print has been "weakening the market's anticipation of further rate hikes." Sun cautioned that the bounce is "only a temporary recovery after the easing of interest rate pressure," with a trend reversal as yet unconfirmed. Bitwise chief investment officer Matt Hougan suggested the market could be nearing a bottom, while Stephen Wundke, strategy and revenue director at Algoz Technologies, said Bitcoin may "bounce around the bottom for a few more weeks," but "the direction of travel is clear to see."

Inflows extended beyond Bitcoin. U.S. spot Ether ETFs ($ETH) attracted $29.1 million on Thursday, following $14.9 million in inflows a day earlier. Adziima noted that "the same positive shift is now supporting renewed flows into Ethereum ETFs as well." XRP ETFs returned to net inflows with $6.6 million after two consecutive sessions of outflows. Crypto market sentiment on Friday remained at an "extreme fear" reading on the Fear & Greed Index from Alternative.me, and on prediction market Myriad, owned by Decrypt's parent company Dastan, users put the chances of Bitcoin's next move taking it to $55,000 rather than $84,000 at 74%, roughly unchanged from a week earlier. Year-to-date net outflows for U.S. spot Bitcoin ETFs still sit at approximately $5.4 billion, leaving Thursday's gain a single data point in a longer drawdown.