A rush of inflows into spot Bitcoin ETFs on July 10 and 11 has given way to fading demand.
Bitcoin ETFs saw a dramatic two-day surge in inflows on July 10 and 11, followed by a steep cooldown heading into July 14. Data shows inflows of $1.18 billion on July 10 and $1.03 billion on July 11, totaling over $2.2 billion.
These were among the strongest single-day performances since ETFs launched in January 2024, as the market saw only seven trading sessions with inflows surpassing $1 billion.
The spike was driven primarily by BlackRock’s IBIT, which attracted $448.5 million and $953.5 million on those days. Fidelity’s FBTC and Ark’s ARKB also posted sizeable inflows, while minor contributions came from VanEck and Grayscale’s BTCW.
The inflows followed a sharp upward movement in Bitcoin’s spot price. BTC opened July 10 at $119,071 and surged to a high of $123,220, its highest daily wick since the start of July. On July 11, it closed just below $117,600 after intraday gains nearing $119,000. This rally also drove volume, which peaked at 43,113 BTC traded on July 10, well above the seven-day average.
However, by July 14, inflows had cooled substantially. At the beginning of the week, ETFs brought in only $297 million in new funds, with notable outflows from FBTC ($26.1 million) and ARKB ($99.6 million).
IBIT remained the only ETF to post inflows above $100 million as demand softened amid Bitcoin’s pullback from its ATH, dropping from an opening of $119,071 on July 14 to a close of $117,175 by July 15.
The sharp contrast between the July 10 and July 11 buying and the July 14 cooldown shows that ETF flows have become increasingly correlated with short-term price movements. Institutional flows into IBIT appear to front-run or amplify price rallies, but there is little follow-through when price momentum weakens.
The pattern also suggests that while ETFs continue to play a key role in absorbing supply during bullish swings, they are still subject to rapid sentiment reversals.
The sharp drop in ETF demand on July 14, despite Bitcoin staying above $117,000, could indicate investor hesitation at current valuations or rotation away from high-beta exposure after a quick rally.
Unless ETF demand stabilizes at higher levels, short bursts of inflows may continue to produce uneven support for Bitcoin’s price.
