Crypto ETFs See Inflows After Outflow Streak

U.S. spot Bitcoin and Ethereum ETFs experienced a reversal on Wednesday, recording net inflows of $91.5 million and $35.12 million respectively after several days of significant outflows totaling $1.45 billion. BlackRock's IBIT led Bitcoin ETF inflows, while Bitwise's BITB and Grayscale's GBTC also posted notable gains, with Ark & 21Shares’ ARKB being the only major ETF to see outflows. Analysts attribute the recovery to stabilizing investor sentiment, cooling U.S. inflation, and growing expectations of a Federal Reserve rate cut in September, despite persisting macroeconomic uncertainties. Retail investors, who comprise a large share of ETF participants, have contributed to recent volatility. Ethereum ETFs rebounded after record outflows earlier in the week, with BlackRock’s ETHA and Grayscale’s ETHE leading the gains. While the positive ETF flows suggest underlying market resilience, analysts caution that a sustained uptrend is not yet confirmed.