Bitcoin ETF Inflows Slump Amid Economic and Political Factors
U.S. spot Bitcoin ETFs saw a significant drop in weekly inflows into U.S. spot bitcoin ETFs last week. This decline was influenced by fading hopes for a Federal Reserve rate cut and teh passage of Trump’s budget bill, which dampened investor interest.
According to SoSoValue data, the 12 spot Bitcoin ETFs collected $769.6 million, a 65% decrease from the previous week’s $2.22 billion. The week started with $102.14 million in net inflows on Monday, but saw a sharp outflow of $342.25 million on Tuesday. However,there was a turnaround midweek,with $407.78 million flowing in on Wednesday. Thursday saw the highest single-day inflow as May, with $601.94 million. The markets were closed on Friday for the U.S. Independence Day.
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,added another $109.2 million in combined inflows. However, Grayscale’s legacy GBTC saw net outflows of $84.9 million.
The decline in inflows is partly due to profit-taking as Bitcoin neared its all-time high of $111,960. Investors are likely locking in gains ahead of the holiday weekend,reducing short-term flows into crypto investment vehicles.
Broader economic factors also played a role. The June U.S.jobs report was stronger than expected, weakening hopes for a July rate cut. This led investors to rebalance their exposure to assets like Bitcoin. Additionally, the passage of Trump’s One Big Beautiful Bill, which lacked crypto-related tax provisions, disappointed some in the crypto industry.
Following the Senate vote, Bitcoin briefly dropped to $105,000 on July 2 but rebounded above $110,000 a day later after a new trade deal was announced.
As of press time, Bitcoin is trading at $109,000, just 2.5% below its all-time high. Despite concerns over U.S. tariffs,analysts remain optimistic about Bitcoin’s medium-term outlook. Standard Chartered reaffirmed its Q3 target of $135,000 for Bitcoin and its year-end forecast of $200,000.
