Bitcoin and Ether ETFs snap outflow streak as prices slip

Crypto ETF demand turned positive again last week, giving Bitcoin and Ether investors a break from weeks of money leaving the funds. The shift matters because spot exchange-traded funds, or ETFs that hold the underlying crypto asset, are one of the main ways brokerage-account investors get exposure without using a crypto exchange.

U.S. spot Bitcoin ETFs recorded about $197 million in net inflows for the week, according to Coinglass data cited by Tyler Warner in Decrypt’s Morning Minute. Net inflows mean more money entered the products than left them. The move marked the first positive week for the Bitcoin funds since May, after they lost $527 million on a net basis the prior week.

Spot Ether ETFs also moved back into the green. The funds brought in about $84 million after a small net outflow the week before, putting combined Bitcoin and Ether ETF inflows near $282 million, according to the same Coinglass figures cited by Decrypt.

How the week broke down

The Bitcoin ETF rebound was uneven. Coinglass data cited by Decrypt showed the funds started with a $265.7 million inflow on Monday and added $21.5 million on Tuesday. They then saw $84.9 million exit on Wednesday and $95.3 million leave on Thursday during an escalation involving Iran, before ending Friday with a $90.4 million inflow.

BlackRock’s iShares Bitcoin Trust, known by its ticker IBIT, led the buying on the two strongest days. The fund added $209.4 million on Monday and $86.8 million on Friday, according to the Coinglass figures cited by Decrypt. Warner noted that IBIT had also been the largest contributor to June’s record outflows, making its return to positive flows a key part of the weekly reversal.

ETF flows do not set crypto prices by themselves, but they can show whether regulated investment products are drawing fresh demand. When a spot ETF sees sustained inflows, the fund provider generally needs exposure to the underlying asset to back the shares. That can affect market sentiment, especially for assets like Bitcoin and Ether where ETF demand is watched closely by retail and professional investors.

Prices still pulled back

The positive ETF week did not stop a fresh overnight selloff across large crypto assets. Decrypt’s listed market prices showed Bitcoin at $62,809, down 1.91%, and Ether at $1,779.48, down 1.43%. Solana traded at $76.05, down 1.25%, while Hyperliquid’s HYPE token was down 3.16% at $64.83.

Warner wrote that Bitcoin had rebounded to $64,000 alongside the ETF inflows before falling back to just under $63,000 overnight. He also pointed to Tuesday’s consumer price index reading, a key inflation report, as the last major data point before the July 28-29 Federal Open Market Committee meeting.

Elsewhere in crypto, Decrypt reported that NEAR activated its v2.13.0 mainnet upgrade, Zcash confirmed July 28 for its Ironwood upgrade, and Robinhood Chain saw more than $2 billion in decentralized exchange volume over the weekend with over 800,000 active addresses.

This story draws on original reporting from Decrypt.