Bitcoin ETF Sees Single-Day Net Inflow Exceed $200 Million, Halting Ten-Day Outflow Streak

Following a period of weakness since May, U.S. spot Bitcoin exchange-traded funds (ETFs) have recorded their first single-day net inflow exceeding $200 million, signaling a formal end to the weeks-long capital exodus.

Matt Hougan, Chief Investment Officer at Bitwise, noted that this return of funds suggests the market may have found a bottom, even though sentiment indicators remain low.

A pivotal shift occurred on Thursday, with total net inflows reaching $221.7 million, directly reversing a ten-day streak of net outflows that had previously seen cumulative outflows surpass $2.7 billion.

This rebound follows a period of softness in June, which set a record for net outflows of $4.5 billion, and coincides with Bitcoin's price recovering from just below $59,000 to above $61,000.

Notably, the Fear & Greed Index published indicated that market sentiment remained in the "Extreme Fear" zone on Friday, creating a stark contrast with the capital inflows.

Institutional fund flows showed significant divergence, with Fidelity's Wise Origin Bitcoin Fund (FBTC.US) leading the recovery, attracting a single-day net inflow of $166 million, accounting for 75% of the day's total.

The ARK 21Shares Bitcoin ETF (ARKB.US) followed, absorbing $91.8 million, while the VanEck Bitcoin ETF (HODL.US) and the Valkyrie Bitcoin Fund (BRRR.US) recorded net inflows of $4.4 million and $1.7 million, respectively.

Data compiled shows that the largest fund by assets, BlackRock's iShares Bitcoin Trust (IBIT.US), continued to see outflows, with a net outflow of $40.4 million on Thursday. It has now experienced outflows for 11 consecutive trading days since June 17, with cumulative outflows exceeding $2.2 billion.

The warming effect from Bitcoin ETFs quickly spilled over into other crypto asset sectors.

The U.S. spot Ethereum ETF (ETHA.US) attracted $29.1 million on Thursday, an increase from the previous day's inflow of $14.9 million.

An ETF related to Ripple also returned to net inflows after two days of outflows, taking in $6.6 million for the day.

As Bitcoin's price stabilized above $61,000, the global cryptocurrency market capitalization grew by 2.4% over the past 24 hours, with the total market value recovering to $2.22 trillion.