Bitcoin ETF Inflows Plummet 65%—Is This the Calm Before the Next Crypto Storm?
Wall Street's crypto love affair hits a speed bump as Bitcoin ETF demand nosedives.
Investors tap the brakes after record highs—but smart money sees a buying opportunity.
The numbers don't lie: A 65% freefall in ETF inflows paints a clear picture of skittish traders. Yet crypto veterans recognize this classic pattern—the market always shakes out weak hands before the next leg up.
While traditional finance pundits cluck about 'irrational exuberance,' blockchain believers are stacking sats. After all, when has Wall Street ever timed a market correctly?
This isn't a retreat—it's a tactical reload. The real question isn't if inflows will rebound, but when.
- Weekly inflows into U.S. spot Bitcoin ETFs dropped by 65 percent to $769.6 million.
- BlackRock’s IBIT led the week with $336.8 million in net inflows.
- Fidelity’s FBTC and ARK 21Shares’ ARKB followed with $248.4 million and $160 million, respectively.
U.S. spot Bitcoin ETFs recorded a sharp drop in weekly inflows, signaling reduced investor activity amid changing market conditions. Total net inflows fell to $769.6 million, a steep decline from $2.22 billion in the previous week. The slowdown followed a week of economic data surprises and policy developments affecting investor sentiment.
IBIT Leads as Bitcoin ETF Inflows Shift
The best-performing fund at BlackRock was IBIT, which pulled in a net inflow of 336.8 million as of last week. Fidelity FBTC came next with US$248.4, followed by ADX 21Shares ARKB, which raised US$160 million. The three issuers had a total of over 95 percent of all inflows.
The other inflows were smaller funds such as Bitwise BITB, Invesco BTCO, and VanEck HODL, which totaled $109.2 million. However, legacy GBTC at Grayscale recorded a net outflow of $84.9 million, which has made the weekly net gain too low.
Source: Sosovalue
Volatility was observed in trading patterns with inflows on Monday and huge outflows on Tuesday, amounting to 342.25 million. The inflows recovered by midweek with the highest single-day performance since May at $601.94 million on Thursday. Yet, markets were closed on Friday since it was Independence Day.
Crypto Sentiment Mixed After Policy Moves
The U.S. June jobs report beat expectations with a gain of 147,000 in nonfarm payrolls, which dashed expectations of a rate cut. Stronger labor market data prompted investors to shift from risk assets like bitcoin ETFs. As a result, rate cut expectations dampened, and speculative flows into digital asset funds reduced.
At the same time, the uncertainty was augmented by the financial dynamics provoked by Trump’s new budget plan, which the Senate approved. The bill left out proposed tax restructuring in favor of crypto staking and mining activity, much to the chagrin of portions of the crypto community that wanted more tax clarity and relief.
Bitcoin’s price reflected the mixed sentiment, falling to $105,000 on July 2 after the Senate vote. However, the cost recovered to above $110,000 with an announcement of a trade deal with one of the key partners under ASEAN. According to the latest data, Bitcoin is trading at $109,000, which is nearly its all-time high.
Despite the weekly dip in ETF inflows, analysts remain confident about Bitcoin’s medium-term performance. Standard Chartered has kept its Q3 price target at $135,000 and its price target at the end of the year at $200,000. These were limited supply of exchange and continued institutional demand mentioned by the bank.
Other market observers also anticipate higher prices due to the influence of global liquidity and the operation of ETFs. Based on the estimates of Bernstein and BitMEX CEO Arthur Hayes, the level towards year-end could reach $200,000 to $250,000. The targets are pegged on inflows of ETFs again and favourable macroeconomics.
