US Crypto ETFs See Net Outflows Amid Market Momentum Break

A recent reversal in capital flows from American spot ETFs dedicated to cryptos has revived doubts about the crypto market. After weeks of continuous inflows, net outflows were observed at the end of July, breaking a positive streak that had been supporting the market for several weeks.

Far more than just a flow indicator, these funds have become the main barometer of institutional demand in the market. Their move into the red could signal a change of mood on Wall Street regarding Bitcoin, Ethereum, and the entire crypto market.

Despite this down session, the two assets posted their third consecutive week of net inflows and showed a largely positive July. The price of Ether retreated to $1,837, moving away from its weekly high of $1,954 reached on Wednesday, while Bitcoin fell below the $64,000 threshold after hitting a weekly high of $66,892 on Tuesday.

The potential impact of regulatory reforms in Japan is also being closely watched. Following the recent overhaul of the legal framework surrounding cryptos, a mature Japanese Bitcoin ETF market could reach an estimated capitalization of around $18.4 billion, according to XWIN's analysis. This volume would represent approximately 0.13% of the $14.6 trillion total financial assets of Japanese households.