Bitcoin ETFs pull in $1B weekly inflows, best since April

US spot Bitcoin ETFs pulled in about $1 billion in weekly net inflows, the strongest performance since April, as investors favored regulated custody after the Coldcard hardware wallet hack.

"We've developed this market to date with zero bank liquidity. Zero," Christopher Perkins, an executive at Franklin Templeton, said, linking a coming shift to the CLARITY Act.

BlackRock's iShares Bitcoin Trust led the week with $757.5 million of inflows, according to Crypto Briefing. On Aug. 6 alone, US spot Bitcoin ETFs recorded $128.69 million in net inflows, with IBIT contributing $128.33 million, per bloomingbit. Fidelity's FBTC and Morgan Stanley's MSBT also posted gains, while VanEck's HODL saw $32.77 million in outflows and Valkyrie's BRRR lost $9.07 million.

The inflows mark a tentative recovery in institutional demand, though Bitcoin's spot price has yet to break meaningfully higher, trading near $64,900 as of 14:00 UTC on Aug. 7. The CLARITY Act, widely seen as a key unlock for a larger institutional bid, is unlikely to reach a Senate vote before Congress begins its August recess.

The Coldcard hack, which began July 30 and compromised more than 5,200 wallets, raised doubts about self-custody and pushed investors toward ETFs with institutional-grade custody. The attacker walked away with about $120 million in bitcoin, CoinDesk reported.

Whale accumulation has run in parallel. Holders with 10 to 10,000 BTC added more than 20,000 bitcoin, worth about $1.2 billion at current prices, since July 29, according to Santiment.

BlackRock's Q2 redemptions tell a different story

CryptoSlate, citing SEC filings, said BlackRock's spot Bitcoin and Ethereum ETFs saw a $3.5 billion net capital-share decrease in Q2 after a $13.9 billion gain a year earlier. IBIT recorded $4.3 billion of contributions for shares issued and $7.2 billion of distributions for shares redeemed during the three months ended June 30, producing a $2.9 billion net decrease. The filings placed 106,148 BTC in rows labeled as assets sold for share redemptions, with in-kind distributions valued at $3.85 billion of bitcoin.

CLARITY Act uncertainty caps the rally

SoSoValue data shows Bitcoin ETFs saw $784 million in inflows this week, with Ethereum ETFs adding $195 million, bringing total crypto ETF inflows to $984 million between Aug. 3 and Aug. 7. Polymarket now prices just a 14 percent chance the CLARITY Act passes in 2026, with the falling odds weighing on US-made coins such as XRP, which dropped to $1.03.

Bitcoin's next resistance sits at $65,000, with support near $64,000. The Fear and Greed Index reads 29, in "fear" territory, even as institutional flows turn positive.

The divergence between ETF inflows and spot price action suggests institutions are accumulating while retail remains cautious. If the CLARITY Act clears the Senate in September, the institutional bid could accelerate; if it stalls, the current range-bound market may persist into the fall.

This article is for informational purposes only and does not constitute investment advice.