Bitcoin ETFs in the US racked up $33.79 million in net inflows for the week ending July 24, marking their third straight week of gains, a streak unseen since early May. However, this progress was undermined by a sharp reversal at the week’s close.
These inflows suggest a tentative revival of interest after the significant outflows that hit the market in June. Yet, the pace is slowing dramatically: the $33.79 million inflow this week is just a fraction of the $197 million seen the week before and pales compared to the $75.67 million in early July. The trend points to dwindling enthusiasm instead of a surging recovery.
Rapid Outflows Undermine Weekly Gains
The optimism evaporated quickly in the last two trading days. On Thursday and Friday combined, $465 million exited bitcoin ETFs, wiping out most of the week's earlier inflows. BlackRock’s IBIT fund bore the brunt, accounting for nearly $415 million of redemptions alone. Since its January 2024 launch, BlackRock has dominated the bitcoin ETF space, and its fund’s performance heavily sways market numbers; a large outflow from IBIT tends to drag the entire sector down.
Bitcoin’s price mirrored this uncertainty. After climbing above $66,500 on July 22, the price fell below $64,000 by Friday, as investors cashed out profits. The move aligned with a broad drop in technology stocks, with the Nasdaq 100 dragged down by a sell-off in semiconductor shares, a key component of the artificial intelligence sector. This technology sector weakness spread to riskier assets like bitcoin.
As of July 27, bitcoin hovered near $65,000, rising a modest 0.9%. The market mood remains mixed, caught between hopes of a strong summer rally and fears of turbulence ahead for equity markets. Bitcoin ETFs have enjoyed their best consecutive inflow run since spring, but the diminishing momentum suggests investor caution persists.
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