Key facts
- Spot Bitcoin ETFs recorded $854 million in net inflows last week, the highest since May.
- BlackRock's IBIT led inflows, attracting approximately $690 million.
- Ethereum ETFs also saw significant inflows, totaling $244 million.
- Weak U.S. employment data and reduced rate hike expectations are cited as drivers for the inflows.
- The July jobs report showed a net loss of 23,000 jobs, contrary to expectations.
Spot Bitcoin ETFs experienced their strongest week of inflows since May, pulling in approximately $854 million. This marks a significant shift after an eight-week outflow streak that concluded in early July. BlackRock's iShares Bitcoin Trust (IBIT) was the primary driver, attracting about $690 million, or 80% of the total weekly inflows. Ethereum ETFs also saw robust inflows, with $244 million recorded last week.
Analysts attribute this renewed institutional interest to a combination of positive macroeconomic factors. The July jobs report significantly missed expectations, showing a loss of 23,000 jobs, which led to a sharp decline in the odds of a September Federal Reserve rate hike, from 67% to 42%. This easing of rate-hike bets is seen as a key catalyst for increased investment in digital assets.
While the inflows are a positive sign, some analysts remain cautious, noting that the overall weekly gains for Bitcoin and Ethereum were modest. The sustained trend reversal and the potential for future rate hikes are still points of consideration. However, firms like CoinShares suggest that the cycle lows for Bitcoin may be in the past, citing recent accumulation trends.