Bitcoin ETFs Experience Third Consecutive Week of Inflows Despite Late Losses

Bitcoin ETFs Show Resilience Despite Late-Week Losses

In a notable development for the cryptocurrency market, Bitcoin exchange-traded funds (ETFs) have recorded a third consecutive week of inflows, gaining $33.79 million. This occurs despite experiencing late-week losses totaling $465.26 million on Thursday and Friday, which ended a seven-day streak of positive performance.

Dominant Inflows from BlackRock’s Product

The majority of inflow activity was driven by BlackRock’s IBIT product, which accounted for nearly $415 million of the total inflows. However, the outflows that occurred during the last part of the week, approximately $225.2 million and $240.1 million on July 23 and 24 respectively, overshadowed these gains.

Institutional Demand is Cautious

While July showed signs of recovery following significant outflows in May and June, crypto analytics firm BRN reported that institutional demand remains subdued. They noted, “After May and June’s heavy outflows, July’s repair phase has brought relief, but institutional demand is still cautious.”

Market Behavior: Profit-Taking and Economic Factors

Bitcoin reached a July high of over $66,500 on Tuesday but fell below $64,000 by the week’s end. This backlash was attributed to profit-taking activities and broader weakness in the stock market, particularly impacted by declines among chipmaker stocks, which are influential in the AI industry.