Fidelity's FBTC led the gains with $166 million in inflows, while ARKB attracted $91.8 million. The recovery came as Bitcoin climbed more than 1% over the past 24 hours to trade above $61,000. Despite the improvement in ETF demand, BlackRock's IBIT continued to see outflows.
Bitcoin ETF Investors Pour in $222M
US-listed spot Bitcoin exchange-traded funds (ETFs) recorded a strong recovery on Thursday. According to data from Farside Investors, the funds attracted a combined $223.5 million in net inflows. This was the first daily inflow above $200 million since early May. The rebound also snapped a 10-day streak of net outflows.
BTC ETF flows (Source: Farside Investors)
The renewed demand comes after one of the weakest months for US spot Bitcoin ETF products since their launch. During June, the funds recorded approximately $4.5 billion in net outflows. However, Thursday's inflows suggest that some institutional investors may be beginning to see current price levels as an attractive buying opportunity.
Fidelity's Wise Origin Bitcoin Fund (FBTC) led the recovery with $166 million in net inflows, and accounted for roughly three-quarters of the day's total. ARK 21Shares Bitcoin ETF (ARKB) also attracted strong demand with $91.8 million in fresh capital. Smaller contributions came from the VanEck Bitcoin ETF (HODL), which recorded $4.4 million in inflows, and the Valkyrie Bitcoin Fund (BRRR), which added $1.7 million.
Not every fund participated in the recovery. BlackRock's iShares Bitcoin Trust (IBIT) experienced investor withdrawals. The fund recorded $40.4 million in net outflows on Thursday, which extended its losing streak to 11 consecutive trading sessions.
The rebound in ETF demand coincided with stronger Bitcoin price action over the past 24 hours. After briefly falling below the $59,000 level due to recent selling pressure, Bitcoin recovered to trade above $61,000 after posting gains of more than 1% over the past 24 hours.
BTC’s price action over the past 24 hours (Source: CoinCodex)
Some analysts believe the combination of recovering ETF inflows and Bitcoin's price rebound could indicate that selling pressure is beginning to ease. Bitwise Chief Investment Officer Matt Hougan recently suggested that the market may be approaching a bottom, with institutional investors potentially taking advantage of lower prices to increase their exposure.
(Source: Alternative.me)
Despite the improvement, overall market sentiment is still very cautious. In fact, the Crypto Fear & Greed Index is in the"Extreme Fear" region. Historically, periods of extreme fear have coincided with market bottoms, although they can also persist during extended periods of volatility.
