Spot Bitcoin ETFs Record $197M Inflow, Halting Eight Weeks of Outflows

US-listed spot Bitcoin exchange-traded funds recorded $197.4 million in net inflows for the week ending Friday, ending an eight-week run of outflows that began in May. Spot Ether ETFs similarly halted an identical eight-week losing streak, posting $84.42 million in net inflows over the same period.

BlackRock’s iShares Bitcoin Trust drove the positive week, pulling in $291.9 million. These gains were partially offset by continued selling in the Grayscale Bitcoin Trust ETF, as well as outflows from the Fidelity Wise Origin Bitcoin Fund and the ARK 21 Shares Bitcoin ETF. BlackRock and Fidelity led the inflows for Ether funds.

While the streak breaks are notable, the capital returning represents only a fraction of what recently left the market. Investors had pulled a cumulative $8.26 billion from spot Bitcoin ETFs and $1.2 billion from Ether ETFs since May 11. Against that backdrop, the latest weekly inflows are too small for analysts to declare a broader recovery in institutional demand.

Market observers point to persistent headwinds, including ongoing stablecoin outflows and historical weakness during August and September. “Without flows still pronounced and ETF flows yet to meaningfully pick up, even after Bitcoin's 9%+ jump, the headwinds remain in our view,” said Markus Thielen, founder and CEO of 10x Research. Thielen also noted a recent pattern where Bitcoin strengthens early in the month before consolidating.

Opinions diverge on the broader cycle, though Real Vision chief crypto analyst Jamie Coutts believes the worst of the selling is passing. “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,” Coutts said. Conversely, Hilbert Capital chief investment officer Russell Thompson argues Bitcoin remains in a downcycle that may not bottom until October.