Eight-Week Bleed Stops, but the Bandage Is Doing All the Heavy Lifting 🩹

U.S. spot Bitcoin ETFs ended an eight-week run of net outflows during the week ended Friday, pulling in $197.4 million on a net basis after investors withdrew $527 million the prior week, according to Farside Investors and SoSoValue data. U.S. spot Ether ETFs broke their own eight-week losing streak in the same window, recording $84.42 million in net inflows, lifting the combined two-product haul to roughly $282 million.

The week's Bitcoin flows were bookended by large green days: $265.7 million in on Monday and $90.4 million in on Friday, with a $21.5 million addition on Tuesday. Midweek selling, attributed to the Iran escalation, produced $84.9 million in outflows on Wednesday and $95.3 million in outflows on Thursday. BlackRock's IBIT led buying on both green days, taking in $209.4 million on Monday and $86.8 million on Friday. IBIT was the single largest source of June's record outflows, which totaled $4.51 billion for the month and $8.26 billion since May 11, according to SoSoValue.

The tentative rebound reversed quickly. On the following Monday, spot Bitcoin ETFs recorded $424.66 million in net outflows, the largest single-day withdrawal in July so far, leaving ETF demand fragile after June's record outflow month. Cumulative net inflows into U.S. spot Bitcoin ETFs stood at $50.85 billion at that point, with total net assets at $74.79 billion. The funds had first crossed the $50 billion cumulative inflow milestone in July 2025, roughly 18 months after launching in January 2024.

Buyers returned again later in the month, with $181 million in inflows on a Tuesday, $108 million on Wednesday, and $79.2 million on Thursday, a three-session streak totaling about $368 million, per SoSoValue. Cumulative net inflows climbed to $51.2 billion and assets under management to $77.7 billion. Bitcoin briefly climbed above $65,000 on the Wednesday of that run for the first time since late June, according to CoinGecko. Bitcoin traded at $62,851 as of Friday and at $63,830.57 in later reporting, roughly 28% to 30% below its level at the start of the year.

Analysts were divided on what the flows signal. Monochrome Asset Management founder and CEO Jeff Yew said, "While one week of inflows doesn't define a trend, it comes at a time when institutional confidence is growing around the potential passage of the CLARITY Act in the US in August next month," telling Cointelegraph the inflows could indicate institutions positioning ahead of greater regulatory certainty. Real Vision chief crypto analyst Jamie Coutts said, "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," in remarks to Cointelegraph. 10x Research founder and CEO Markus Thielen pointed to ETF and stablecoin outflows and August and September seasonality as ongoing headwinds, while Hilbert Capital chief investment officer Russell Thompson said he believes Bitcoin remains in a downcycle and could hit a low around October this year. CryptoQuant analyst Sunny Mom wrote, "A definitive, broad-based market bottom has yet to be confirmed," noting whale accumulation could limit further downside without yet signaling a sustained recovery.