BlackRock leads $233M Bitcoin ETF inflows, reversing two-month outflows

US spot Bitcoin ETFs attracted $233.1 million on Thursday, marking the strongest daily demand the sector has seen in more than three weeks. The sudden burst of capital flipped the week's net flows into positive territory at $203.84 million. As long as Friday does not bring an outflow exceeding that figure, the funds will secure their fourth consecutive week in the green.

Institutional demand for these funds is proving to be highly concentrated. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for 78.7% of the daily total, pulling in $183.4 million alone, according to SoSoValue data. Bitwise’s BITB and Fidelity’s FBTC followed with $20.7 million and $15.5 million, respectively. Smaller issuers continue to lag, capturing only marginal portions of the new capital entering the space.

Thursday's momentum carries broader significance for the crypto market's institutionalization. Total July inflows now stand at $437.8 million. Barring a drastic reversal on the final trading day of the month, this will end a punishing two-month period that saw multibillion-dollar net outflows drain the products following their explosive early-year debut.

Notably, this institutional accumulation is occurring despite flat-to-negative price action in the underlying asset. Bitcoin was trading at $64,338, down 1.8% over the past week, according to CoinGecko. This divergence between ETF inflows and spot prices suggests that large allocators are using recent weakness to steadily build positions rather than chasing upward momentum.

Spot Ether ETFs are exhibiting a similar, though less dramatic, stabilization. The funds brought in $13.3 million on Thursday. Over the course of July, they have recorded net inflows on all but five trading days. This represents a marked structural improvement from June, when the newly launched products managed positive flows on just four days. Ether was trading at $1,905.