For the first time since early May, Bitcoin exchange-traded funds (ETFs) have posted three consecutive days of net inflows, potentially signaling a shift in investor sentiment after the longest and deepest outflow streak on record. According to data cited by Coin Edition and Decrypt, the products gathered roughly $510 million between Friday and Monday, ending an eight-week sell-off that drained over $8.6 billion from the funds.
BlackRock’s iShares Bitcoin Trust (IBIT) led the renewed interest, attracting $54.80 million on July 7 alone, while total daily inflows across U.S. spot Bitcoin ETFs hit $21.44 million. James Butterfill, head of research at 21Shares, described the turnaround: “It looks like sentiment might be turning a corner. They are the largest inflows we’ve seen since the outflows began in early May, suggesting we’re maybe through the worst of it.” Despite the bounce, year-to-date net flows remain deeply negative at -$2.8 billion.
The recovery in ETF demand comes as Bitcoin’s price hovers near $62,741 on July 8, down about 0.92% on the day. On-chain data from Glassnode shows that the average cost basis for ETF buyers is around $83,800, meaning most allocated investors are still underwater. Large holders, or “whales” with 1,000+ BTC, have shed more than $40 billion worth of the asset since the all-time high, though that selling pressure has recently eased.
Technical analysts, including Ali Charts, note that Bitcoin is again testing – and being rejected from – the upper boundary of a descending channel that has capped price action since October 2026’s peak above $126,000. The cryptocurrency bounced from the June 25 low near $58,000 but has so far failed to break above channel resistance near $63,000. The macro backdrop remains challenging: overnight strikes between U.S. and Iranian forces pushed oil prices up 3.3% and strengthened the dollar, while the Federal Reserve’s inflation fight and conflict in the Middle East keep rate-cut expectations uncertain. Butterfill warned that “Bitcoin remains very, very sensitive to the inflation outlook, and by proxy, the Iran war and the outlook from the Fed,” limiting the potential for a sustained breakout.
On a proportional basis, the eight-week ETF bleed represented roughly 8% of total assets under management, comparable to drawdowns seen at the 2018 cycle bottom. Yet daily outflows peaked at $733 million – a figure surpassed several times in 2025 – suggesting that while the scale of redemptions was record-setting in aggregate, its intensity did not match the panic of previous episodes. Whether the nascent inflow streak marks a durable trend reversal or a temporary reprieve will depend heavily on upcoming inflation data and geopolitical developments.
