Institutional Appetite Wavers for Bitcoin ETFs Amid Macro Pressure
The U.S.-listed Bitcoin ETFs continued their recovery phase with a third consecutive week of inflows, signaling that institutional appetite has returned. However, this week's inflow figure was significantly smaller than the previous two weeks due to steep outflows on July 23 and 24.
The funds brought in $33.79 million for the week ending July 24, but nearly half of this amount was erased by outflows of $225.2 million and $240.1 million on those two days. This pattern reflects a market where inflows are present but lack the force typically seen during strong bull cycles.
Data from Farside Investors showed that Bitcoin ETFs posted back-to-back outflows on Thursday and Friday, ending a seven-day inflow streak. BlackRock's IBIT accounted for just under $415 million of the two-day pullback, with Tim Sun of HashKey attributing the reversal to 'tactical, phased allocations near the temporary price bottom.'
The broader contraction in outflows extends beyond crypto, with U.S. stock funds seeing a second week of outflows and bond funds breaking their inflow streak. This shows capital 'on high alert' and leaves Bitcoin vulnerable to further pressure if rate-hike expectations continue to climb.