U.S.-listed spot Bitcoin ETFs continued to see net inflows last week, but large redemptions in the latter part of the week significantly dampened the overall performance. Data shows that these products saw a net inflow of $33.79 million in the week ending July 24, marking the third consecutive week of attracting funds, although the scale was significantly slower than the previous two weeks.
The latter two days of the week saw a large outflow.
According to SoSoValue data, on July 23 and 24, the spot Bitcoin ETF saw net outflows of approximately $225.2 million and $240.1 million respectively, totaling $465.26 million over the two days, ending a previous seven-day streak of net inflows.
Without the concentrated outflows over the past two days, the overall inflow last week would have been even higher. As a result, last week's net inflow was lower than the $197 million and $75.67 million of the previous two weeks.
IBIT accounts for the majority of outflows.
The fund outflows in the latter part of last week were mainly concentrated in BlackRock's IBIT. Reports indicate that this product accounted for approximately $415 million of the outflows, becoming the main drag on the weekly data.
Despite this, US spot Bitcoin ETFs still recorded their first three-week streak of net inflows since early May. Previously, these products had experienced eight consecutive weeks of net outflows, only gradually improving after the week ending May 15.
Institutional demand is recovering, but the strength is limited.
Looking at the overall performance in July, ETF liquidity improved compared to May and June, but the inflow was not strong. Crypto analytics firm BRN told CoinDesk that after large outflows in the previous two months, the recovery phase in July provided some relief, but institutional demand remained cautious.
In terms of price, Bitcoin briefly rose above its July high on Tuesday, breaking through $66,500, before falling back below $64,000 before the weekend. Reports attributed this decline to profit-taking and a cooling of risk appetite due to weakness in US stocks, with the Nasdaq 100 index dragged down by a pullback in chip stocks.
Overall, the flow of funds into spot Bitcoin ETFs has improved from the previous period of continuous outflows. However, the latest weekly data also shows that although institutional buying has recovered, the strength is still weaker than in a typical upward cycle.
