Bitcoin ETF outflow streak ends, but demand recovery remains thin

US spot Bitcoin ETFs have stopped a 10-day run of withdrawals, a sign that selling pressure from listed bitcoin funds has cooled. For everyday investors watching crypto through brokerage accounts, the catch is that the rebound still looks uneven, with analysts pointing to weak spot demand and a fresh one-day outflow.

Spot Bitcoin exchange-traded funds, or ETFs, are listed funds that give investors exposure to bitcoin’s market price without holding the token directly. When these funds post net inflows, more money entered than left during the trading day. Net outflows mean investors pulled more money out than they put in.

Crypto investment firm Swissblock said Thursday on X that the recent selling wave in US spot Bitcoin ETFs had ended. The firm described it as the “most overwhelming” ETF distribution wave of the current bear market and said ETF flows had turned slightly positive again as bitcoin risk eased from capitulation risk.

Data from UK-based investment firm Farside Investors showed that US spot Bitcoin ETFs recorded 10 consecutive trading days of net outflows beginning June 17. The withdrawals totaled $2.7 billion over that stretch, according to Farside.

The flow picture then improved for three sessions, with the ETF group bringing in more than $500 million in net inflows, according to the same data cited by Cointelegraph. That recovery did not hold cleanly through Wednesday, when the funds posted a combined net outflow of $84.9 million.

Swissblock says the selling pressure has eased

Swissblock treated the end of the streak as a positive shift, but not a full reset for institutional demand. In the ETF market, institutional demand often refers to buying by asset managers, funds, advisers and other large investors that use ETFs as a regulated wrapper for exposure.

“ETF accumulation is positive, but not yet strong. Institutional conviction is not returning with full force,” Swissblock wrote on X.

That distinction matters because ETF flows can affect the market narrative around bitcoin. Strong, repeated inflows suggest investors are adding exposure through regulated products. Choppy flows suggest demand is less stable, even if the worst stretch of withdrawals has ended.

Bitcoin traded around $63,716 in the market data shown alongside the report, with BTC up 0.37% at the time listed.

CryptoQuant points to a split between spot and futures

Separate research from CryptoQuant contributor IT Tech also showed improving demand, but with an important divide between market segments.

According to IT Tech, Bitcoin’s 30-day cumulative demand was near negative 500,000 BTC one week earlier and had recovered to roughly negative 75,000 BTC this week. Negative cumulative demand means selling or reduced buying still outweighed fresh demand over that period, even though the gap had narrowed.

The improvement came mainly from the derivatives market, according to IT Tech. Derivatives are contracts, such as futures, whose value is tied to bitcoin rather than direct ownership of the coin itself.

IT Tech said futures demand moved from negative 295,000 BTC to slightly positive, while spot demand remained negative. Spot demand refers to buying actual bitcoin at current market prices, rather than trading contracts linked to it.

“The latest bounce has been driven primarily by derivatives traders, while spot buyers are still relatively cautious,” IT Tech wrote in the CryptoQuant research.

The same contributor said bitcoin’s strongest and more durable rallies in the past have tended to happen when both futures and spot demand rise together. For now, the data cited by Swissblock, Farside Investors and CryptoQuant points to a market that has moved away from heavy ETF selling, while still waiting for broader demand to confirm the shift.

This story draws on original reporting from Cointelegraph.