Bitcoin ETFs post first net inflow in 8 weeks as BTC rebounds to $64,000
In brief
- Bitcoin ETFs attracted $197M in net inflows across 13 products, first positive week in 8+ weeks.
- Eight-week redemption streak ended after draining over $8B from Bitcoin ETF sector.
- Bitcoin rose 3% to $64,000, but analysts warn price strength outpaces institutional demand.
- Ethereum ETFs posted first net inflow in 8 weeks with $84.42M.
Daily Flows Paint a Mixed Picture
The week ending July 10 started strong. Data from SoSoValue shows that Monday saw $265 million in inflows, followed by $21.4 million on Tuesday. Demand reversed midweek, however, with net outflows of $84.8 million on Wednesday and $95 million on Thursday. The funds rebounded on Friday, taking in $90.4 million to close the five-day trading period in positive territory.
Spot Ethereum ETFs mirrored Bitcoin's trajectory. They broke an eight-week streak of net redemptions, ending the week with $84.42 million in net inflows.
Analysts: Price Rebound Outpacing Demand
The return of inflows marks a turning point. Swissblock, a digital asset market intelligence firm, said the ETF distribution wave that characterized the bear market has ended. Yet market observers aren't convinced the reversal signals a durable shift.
"For us, the important signal isn't whether ETF flows turn positive for a day or two. It's whether they remain positive long enough to reverse the broader trend in cumulative holdings." — Ecoinometrics, digital asset analysis firm
Ecoinometrics noted that Bitcoin maintaining a price near $64,000 is unexpected given the broader capital flight from the ETF sector. According to the firm, BTC's current price stabilization appears to be outpacing the recovery in demand because a handful of large holders are accumulating while retail demand remains muted.
Swissblock agreed, stating that the current accumulation remains weak and lacks robust institutional conviction. The latest inflow only points to a slowdown in selling rather than a confirmed change in trend.
What's Next
Bitcoin ETF funds still need several more weeks of consistent inflows to show that investors are rebuilding exposure. One week of positive flows, while encouraging, doesn't erase the cumulative damage from two months of outflows. The coming weeks will reveal whether this bounce is a genuine inflection point or a temporary reprieve in a longer-term redemption cycle.
