Bitcoin and Ether ETFs Close the Week in the Red as Outflows Return
US spot Ethereum ETFs snapped a five-day inflow streak with $70.6 million in outflows and Bitcoin funds logged a second down day, though both extended their weekly inflow streaks to three.
In Brief
- US-listed spot Ethereum ETFs logged $70.62 million in net outflows on Friday, ending a five-day inflow streak, while Bitcoin ETFs recorded another $240.08 million in net outflows
- Despite Friday’s reversal, both funds extended their weekly net inflow streaks to three; Ethereum ETFs have drawn $337.74 million in July and Bitcoin ETFs $233.96 million
- XWIN estimates a mature Japanese spot Bitcoin ETF market could reach about $18.4 billion after Japan’s crypto regulatory overhaul, roughly 0.13% of the country’s $14.6 trillion in household financial assets
US-listed spot Ethereum exchange-traded funds snapped a five-day inflow streak on Friday, and Bitcoin ETFs logged a second straight day of outflows, closing an otherwise positive week in the red, Cointelegraph reported. Even so, both products managed to extend their weekly inflow streaks to three.
Spot Ethereum ETFs recorded $70.62 million in net outflows on Friday, ending a run in which they saw $211.25 million in net inflows over the previous five sessions from July 17 to Thursday, according to SoSoValue data. They still posted $103.9 million in net inflows for the week ended Friday.
Spot crypto ETF flows have become one of the market’s most closely watched gauges of demand for Bitcoin and Ether through traditional investment products. Although other jurisdictions, including Hong Kong, have launched similar funds, US-listed ETFs account for the vast majority of assets and trading volumes.
What the Bitcoin ETF outflows reveal about demand
The reversal followed a similar pattern in Bitcoin ETFs, which ended a seven-day inflow streak on Thursday and recorded another $240.08 million in net outflows on Friday. The back-to-back down days took some shine off a week that had otherwise extended a positive run.
Despite the outflows, Bitcoin ETFs also extended their net inflow streak to three consecutive weeks, adding $103.90 million during the week ended Friday and $233.96 million so far in July. That followed a record June, when $4.5 billion flowed out of the funds — making July’s steadier picture a notable improvement.
Prices softened alongside the flows. Bitcoin traded just under $64,000 at the time of Cointelegraph’s report, tumbling from the week’s high of $66,892 on Tuesday, according to CoinGecko, while Ether traded at $1,837, down from Wednesday’s weekly high of $1,954.
Japan’s regulatory overhaul opens a new frontier
Beyond the weekly flows, attention is turning to Japan as a potential new source of ETF demand. Following Japan’s recent overhaul of its crypto regulations — widely viewed as laying the groundwork for future spot Bitcoin ETFs — crypto management platform XWIN estimated that a mature Japanese spot Bitcoin ETF market could reach about $18.4 billion.
That figure would equal roughly 0.13% of the country’s $14.6 trillion in household financial assets. In an analysis posted at CryptoQuant, XWIN said the estimate assumes demand from existing crypto holders, new retail investors using brokerage accounts, and institutional allocators.
The report pointed to the US market as a template, noting that spot Bitcoin ETFs excluding Grayscale’s GBTC have accumulated roughly 1 million Bitcoin, demonstrating how regulated ETF products can connect traditional finance with digital assets. “The key is access,” XWIN said, adding that a Japanese spot Bitcoin ETF would let investors gain exposure through familiar brokerage and custody systems, and characterizing the $18.4 billion figure as “an achievable upper-end market scenario.”
FAQ
How much did crypto ETFs see in outflows on Friday?
US spot Ethereum ETFs logged $70.62 million in net outflows, ending a five-day inflow streak, while Bitcoin ETFs recorded another $240.08 million in net outflows, their second straight down day.
Did the ETFs still have a positive week?
Yes. Despite Friday’s outflows, both extended their weekly net inflow streaks to three. Ethereum ETFs posted $103.9 million in inflows for the week and $337.74 million in July; Bitcoin ETFs added $103.90 million for the week and $233.96 million in July.
What is the outlook for a Japanese Bitcoin ETF?
After Japan’s crypto regulatory overhaul, crypto platform XWIN estimated a mature Japanese spot Bitcoin ETF market could reach about $18.4 billion — roughly 0.13% of Japan’s $14.6 trillion in household financial assets — calling it “an achievable upper-end market scenario.”
