BlackRock's Fund Lifts U.S. Spot Bitcoin ETF Market Out of Four-Session Losing Streak

U.S. spot Bitcoin ETFs have ended their four-session losing streak with a $32.1 million net inflow on July 29, but the recovery is seen as an illusion propped up by BlackRock's iShares Bitcoin Trust ETF (IBIT).

While IBIT attracted $89.8 million in new investments, this influx was enough to cover outflows from Fidelity's Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB), both of which saw a total of $57.7 million leave their funds.

The preceding run had seen four consecutive trading sessions with net outflows, totaling $526 million in losses. Adding July 29's inflow leaves the five-session period $494 million in the red, indicating that the positive print only recovered part of the earlier losses.

Despite this recovery, it is unclear whether institutional demand has truly returned to the U.S. spot Bitcoin ETF market. The issuer distribution will likely look different if subsequent sessions provide sustained positive readings.