Bitcoin’s $64,000 rebound is outrunning ETF demand despite a $197 million inflow

US spot Bitcoin exchange-traded funds (ETFs) recorded their first weekly net inflow in more than two months, attracting $197 million across 13 products.

The inflow ended an eight-week run of net redemptions that pulled more than $8 billion from the Bitcoin ETF sector.

Following the renewed inflows, Bitcoin prices appreciated 3% this week, pushing past the $64,000 threshold as market observers eyed the $65,000 level.

Bitcoin and Ethereum ETFs register weekly inflows

Data from SoSoValue shows that the week ending July 10 commenced with $265 million in inflows on Monday, followed by an additional $21.4 million on Tuesday.

However, demand temporarily reversed midweek, with net outflows of $84.8 million on Wednesday and $95 million on Thursday. The funds subsequently rebounded on Friday, taking in $90.4 million to close the five-day trading period in positive territory.

Notably, spot Ethereum ETFs mirrored the trajectory of their Bitcoin counterparts, similarly breaking an eight-week streak of net redemptions.

The Ethereum products ended the week with $84.42 million in net inflows, aligning with the broader recovery across cryptocurrency investment vehicles.

The improvement across both Bitcoin and ETH products suggests investors have become less aggressive in reducing their crypto exposure.

Digital asset market intelligence firm Swissblock said:

“The most overwhelming ETF distribution wave of this bear market has ended. As Bitcoin Risk continues easing from Capitulation Risk, Spot ETF flows have turned slightly positive again.”

Demand remains weak

Despite these positive inflows, market analysts caution that this short-term reversal may not signal a sustained institutional return.

Still, one positive week provides limited evidence that the broader demand trend has reversed after eight consecutive weeks of redemptions.

Ecoinometrics, a digital asset analysis firm, noted that Bitcoin maintaining a price near $64,000 is unexpected given the broader capital flight from the ETF sector.

According to the firm, BTC's current price stabilization appears to be outpacing the recovery in demand because a handful of positive-flow days have yet to offset the redemptions recorded over the previous eight weeks.

It added:

“For us, the important signal isn't whether ETF flows turn positive for a day or two. It’s whether they remain positive long enough to reverse the broader trend in cumulative holdings.”

Swissblock also agreed with this view, stating that the current accumulation remains weak and lacks robust institutional conviction.

In view of this, the latest inflow only points to a slowdown in selling rather than a confirmed change in trend.

While Bitcoin ETFs might have broken their eight-week losing streak, the funds still need several more weeks of consistent inflows to show that investors are rebuilding exposure rather than briefly pausing their retreat.

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