BTC ETFs raise $1 billion despite tensions in Middle East
Bitcoin ETF inflows hit $1.02 billion but pace slows amid market caution
Spot Bitcoin exchange-traded funds (ETFs) attracted a total of $1.02 billion in net inflows last week, according to market data, showing that institutional demand remains robust but is starting to taper.
This figure marks a 29% decline from the $1.39 billion inflows recorded the previous week, suggesting that enthusiasm for Bitcoin exposure is moderating as the cryptocurrency’s price action turns sluggish, reports BeInCrypto.
The cooling trend coincided with Bitcoin’s struggle to hold the $103,000 support level amid escalating geopolitical tensions, particularly the worsening Iran-Israel conflict, which has introduced broader risk-off sentiment across financial markets.
BlackRock Dominates Despite Weekly Outflow Shift
Despite the slowdown, BlackRock’s IBIT fund continues to lead the Bitcoin ETF sector, recording the highest net inflows of $1.23 billion last week. This brings IBIT’s total cumulative net inflows to $51 billion, maintaining its dominant position among U.S.-listed Bitcoin ETFs. However, the softening pace of inflows across the board highlights increasing investor caution as Bitcoin failed to sustain its upward trajectory. The broader crypto market has reflected similar hesitancy, with Ethereum and altcoins also experiencing price stagnation over the same period.
Bitcoin Faces Downside Pressure Amid Mixed Signals
Bitcoin has since dropped below the key psychological threshold of $103,000 and is currently trading around $101,000, representing a 1% decline over the past 24 hours. Daily trading volume surged by 37%, indicating heavy sell-side pressure as traders rushed to offload positions. Despite the selling, the Bitcoin futures market shows resilience, with a persistently positive funding rate of 0.002%, reflecting ongoing bullish sentiment among leveraged traders.
Additionally, options market activity reveals high demand for call contracts, signaling that many investors still anticipate a price rebound in the near future. This divergence between spot market weakness and derivatives optimism could set the stage for increased volatility in the days ahead.
Recently we wrote that Bitcoin price is under pressure again after geopolitical conflict in the Middle East triggered a deep weekend selloff that flipped June's performance into negative territory.
