Fidelity & Friends Flood Back: Spot Bitcoin ETFs Net $221.7M, IBIT Still Ghosting the Party 🫥

U.S.-listed spot Bitcoin exchange-traded funds pulled in $221.7 million on Thursday, their largest single-day net inflow in roughly two months, snapping a 10-consecutive-day outflow streak that had drained $2.73 billion from the products, according to SoSoValue data. The rebound followed June's record $4.5 billion in net outflows and coincided with Bitcoin ($BTC) reclaiming the $61,000 level after briefly slipping below $59,000 earlier in the week. The global crypto market cap climbed 2.4% to $2.22 trillion over the past 24 hours, per CoinGecko data, even as the Fear & Greed Index from Alternative.me registered an "extreme fear" reading on Friday.

Fidelity's Wise Origin Bitcoin Fund (FBTC) accounted for the bulk of Thursday's inflows at $165.96 million, roughly 75% of the daily total, according to Farside Investors data. ARK 21Shares Bitcoin ETF (ARKB) followed with $91.84 million, while the VanEck Bitcoin ETF (HODL) and Valkyrie Bitcoin Fund (BRRR) added $4.35 million and $1.7 million, respectively. BlackRock's iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF by assets, bucked the trend with a $40.43 million net outflow, extending an 11-session losing run since June 17 that has now cost the fund more than $2.2 billion. Year-to-date net outflows across the U.S. spot Bitcoin ETF complex stood at approximately $5.4 billion.

The catalyst for the rotation was a softer U.S. economic backdrop. The government's June jobs report showed just 57,000 nonfarm payrolls added, well below the roughly 110,000 forecast, while Federal Reserve Chair Kevin Warsh signaled that inflation risks had eased, cooling bets on further rate hikes and pulling the dollar back. Tim Sun, senior researcher at HashKey, tied the turn to "the marginal shift in interest rate expectations," noting 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. Sun cautioned that the bounce is "only a temporary recovery after the easing of interest rate pressure," with Bitcoin's path still "constrained by changes in the U.S. dollar, real interest rates, and Federal Reserve policies." Stephen Wundke, strategy and revenue director at Algoz Technologies, said bargain-hunters were buying oversold assets after a flight to safety that hit even gold, adding that Bitcoin may "bounce around the bottom for a few more weeks." 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. Bitwise chief investment officer Matt Hougan also suggested the market could be nearing a bottom.

The recovery extended beyond Bitcoin products. U.S. spot Ether ETFs ($ETH) attracted $29.1 million on Thursday after taking in $14.9 million a day earlier, per SoSoValue. XRP ETFs returned to net inflows with $6.6 million after two consecutive sessions of outflows. 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.