Bitcoin ETFs See 65% Weekly Inflow Decline After Price Surge

Last week, the U.S. spot Bitcoin ETFs experienced a notable decline in weekly inflows, with a 65% decrease from the previous week. This shift occurred after Bitcoin prices surged to approximately $110,000, leading to a cooling of the market. The reduced investor appetite can be attributed to several factors, including diminishing hopes for Federal Reserve rate cuts and the recent passage of a new budget bill by the Trump administration.

The significant drop in inflows, from $2.22 billion to $769.6 million, indicates a temporary pause in the market's enthusiasm for Bitcoin. The week began with $102.14 million in net inflows on Monday, followed by significant outflows of $342.25 million on Tuesday. However, momentum reversed midweek, with inflows of $407.78 million on Wednesday and $601.94 million on Thursday, the highest single-day inflow since May. Markets remained closed on Friday in observance of the U.S. Independence Day holiday.

Among the issuers, BlackRock’s IBIT led with $336.8 million in weekly inflows, followed by Fidelity’s FBTC with $248.4 million and ARK 21Shares’ ARKB with $160 million. Other funds, including Bitwise’s BITB, Invesco’s BTCO, Franklin Templeton’s EZBC, Valkyrie’s BRRR, and VanEck’s HODL, along with minor inflows into Grayscale’s new BTC funds, added another $109.2 million in combined inflows. These were partially offset by net outflows of $84.9 million from Grayscale’s legacy GBTC.

The sharp decline in inflows is partly attributed to profit-taking activity, as Bitcoin approached its all-time high near $111,960. Investors are likely locking in gains ahead of the holiday weekend, limiting directional conviction and reducing short-term flows into crypto investment vehicles. Broader macroeconomic developments also weighed on sentiment. The June U.S. jobs report came in stronger than expected, with nonfarm payrolls rising by 147,000 versus consensus estimates around 110,000. As the report weakened hopes for a July rate cut, investors started rebalancing their exposure to assets such as Bitcoin.

Simultaneously, market sentiment was impacted by the passage of Trump’s One Big Beautiful Bill, a comprehensive tax and spending package that cleared the Senate on July 1. Although the bill included fiscal reforms, it failed to include crypto-related tax provisions that had been proposed by pro-crypto lawmakers, including favorable treatment for staking and mining activities. This disappointed segments of the crypto industry, who had hoped for regulatory clarity and tax relief. Following the Senate vote, Bitcoin briefly dropped to $105,000 on July 2, as investors digested the bill’s implications on the crypto industry. However, the asset swiftly rebounded above $110,000 a day later, after President Trump announced a new trade deal with a key ASEAN partner, restoring some investor confidence.

As of the latest data, Bitcoin (BTC) is trading at $109,000, showing little change on the day and hovering just 2.5% below its all-time high. Despite lingering concerns over U.S. tariffs, analysts remain optimistic about Bitcoin’s medium-term outlook. Standard Chartered recently reaffirmed its Q3 target of $135,000 for Bitcoin and reiterated its year-end forecast of $200,000, citing continued institutional demand and constrained exchange supply. Other analysts, including those at Bernstein and BitMEX’s Arthur Hayes, have set even more aggressive targets between $200,000 and $250,000 by year-end, contingent on ETF inflows and global liquidity conditions.