BlackRock leads Bitcoin ETF inflows with $86.83 million as Bitcoin trades above $64,000

BlackRock dominates with IBIT inflows

BlackRock, the world’s largest asset manager, saw its iShares Bitcoin Trust (IBIT) bring in $86.83 million in fresh funds. VanEck’s HODL product followed at a distance, attracting $3.61 million. Together, these inflows pushed total Bitcoin ETF additions on the day to $90.44 million. Since its January 2024 launch, IBIT has gathered around $60.29 billion in cumulative inflows, while HODL has collected approximately $1.14 billion.

BlackRock’s IBIT dominated flows among spot Bitcoin ETFs, amassing nearly all daily inflows as other ETFs saw limited activity, reflecting institutional preference for products with deep liquidity and lower costs.

Overall, U.S. spot Bitcoin ETFs now hold about $77.42 billion in net assets, corresponding to roughly 6.05% of Bitcoin’s current market capitalization. Cumulative net inflows into U.S. Bitcoin ETFs have reached $51.28 billion since trading began earlier this year.

The ETF market’s recovery follows a challenging period in June, when Bitcoin funds experienced around $4 billion in net outflows, including a streak of 10 consecutive days with a $2.73 billion withdrawal. Early July brought renewed demand, but flows remain concentrated in just a few established products.

Spot Ethereum products also attract new capital

U.S. spot Ethereum ETFs collected $18.43 million in net inflows the same day, representing about 10,550 ETH at current prices. BlackRock’s ETHA fund accounted for $16.20 million of this total, with Fidelity’s FETH product contributing $2.23 million. The inflows highlight continued investor interest in regulated crypto assets beyond Bitcoin.

Mini dictionary: Fidelity — a global financial services company known for asset management, retirement planning, and managing various financial products, including ETFs.

While Bitcoin remains the primary focus for institutional capital, these figures suggest that regulated Ethereum funds are also gaining traction as the market seeks diversification.

Bitcoin hovers near $65,000 resistance

Bitcoin briefly traded near $64,149 after the positive ETF flows, supported by improvements in broader risk sentiment. Ethereum hovered around $1,798. Risk assets saw increased demand as lower oil prices and a weaker dollar reassured investors about short-term inflation.

However, resistance remains firm near the $65,000 level for Bitcoin. Market observers point out that price advances may trigger selling from short-term holders who purchased near previous market highs. According to CryptoQuant data, holders who have owned Bitcoin for between one and six months remain about 15% underwater, with newer buyers’ average realized prices at $61,600 and those holding for slightly longer at $74,900.

This setup creates the potential for increased selling if prices approach the $71,000 to $77,500 range, where many investors may try to reduce losses. A break above $71,000 could strengthen the technical structure, but heavier supply is likely between $73,200 and $77,500 if momentum continues higher.

Short-term holders remain underwater, with many likely to sell if Bitcoin rallies into the $71,000 to $77,500 band, exposing the market to profit-taking pressure.

Market participants also note that inflows from spot ETFs reflect stronger, more stable demand than that seen in leveraged futures activity, although buying remains selective and the Coinbase premium is still subdued. As such, increased leverage could expose Bitcoin to sharp liquidations if the price fails to hold above $64,000.

Crypto market analyst Axel Adler Jr. reported that short-term holder buying pressure exceeded selling during June and July, with buying scores ranging from 37% to 46% and selling near 16%. While this supports the potential for a further rally, persistent caution remains among existing holders.