US-listed spot Bitcoin exchange-traded funds recorded a net inflow of $197.4 million in the week ended Friday, snapping an eight-week streak of weekly outflows dating back to May.
Data from Farside Investors shows that most of the week’s gains came from the BlackRock iShares Bitcoin Trust ETF, which recorded $291.9 million in inflows. This was offset by outflows from the Grayscale Bitcoin Trust ETF, the Fidelity Wise Origin Bitcoin Fund and the ARK 21 Shares Bitcoin ETF.
The end of the outflow streak could suggest institutional demand for Bitcoin is recovering after two months of sustained selling pressure. However, analysts say it’s too early to tell.
“While one week of inflows doesn’t define a trend, it comes at a time when institutional confidence is growing around the potential passage of the CLARITY Act in the US in August next month,” Monochrome Asset Management founder and CEO Jeff Yew told Cointelegraph.
“This could be an early indication that institutions are beginning to position ahead of greater regulatory certainty, which is often what long-term capital allocators look for.”
Meanwhile, 10x Research founder and CEO Markus Thielen said ETF and stablecoin outflows and seasonality in August and September remain headwinds.
“There’s also been a pattern over the past few months where Bitcoin performs better in the first half of the month, then consolidates in the latter half. Without flows still pronounced and ETF flows yet to meaningfully pick up, even after Bitcoin’s 9%+ jump, the headwinds remain in our view.”
The $197.4 million weekly inflow was modest compared with the $8.26 billion investors withdrew since May 11.
Total spot Bitcoin ETF net inflow. Source: SoSoValue
Last week, Real Vision chief crypto analyst Jamie Coutts told Cointelegraph that Bitcoin could be entering the latter stages of the bear market, based on early technical signs suggesting that selling pressure is easing.
Related: Strategy’s Saylor needs clarity in BTC pivot message to convince investors: StanChart
“I think we’re getting through most of the bear market action. It’s still not over, clearly. But you know, I think we’re approaching at least the second half,” Coutts said.
Other analysts say there could be further downsides ahead.
Russell Thompson, chief investment officer at asset manager Hilbert Capital told Cointelegraph last week that he believes Bitcoin remains in a downcycle and could hit a low around October this year.
Ether ETFs also break outflow streak
Meanwhile, US-listed spot Ether ETFs also broke their eight-week losing streak, with $84.42 million in net inflows for the week ended Friday, led by BlackRock and Fidelity’s Ether funds.
The inflows paled in comparison with the $1.2 billion in net outflows since May 11.
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