Institutional Torrent: $157 Million Flows Into Bitcoin ETFs Amid Market Retracement
Spot Bitcoin ETFs absorbed a fresh wave of capital on July 28, drawing net inflows of $157 million even as the total crypto market cap pulled back over 5 percent. BlackRock’s IBIT dominated with $147.36 million, while Fidelity’s FBTC added $30.88 million. In contrast, Ark 21Shares’ ARKB and Bitwise’s BITB saw outflows of $17.45 million and $14.76 million respectively. These movements lifted combined Bitcoin ETF assets to $153.19 billion, up from $153.03 billion a day earlier, with daily trading volume holding firm at $3.34 billion—underscoring ETFs’ critical role as the institutional on-ramp to Bitcoin exposure.
Ethereum ETFs Extend Record Streak: Seventeen Consecutive Days, $65 Million In
Parallel to Bitcoin’s resurgence, Ethereum ETFs notched a seventeenth straight day of inflows, capturing $65.14 million on July 28. BlackRock’s ETHA led the sector with $131.95 million, bringing its total AUM to $11.22 billion despite Fidelity’s FETH and Grayscale’s ETHE experiencing outflows of $49.23 million and $17.58 million. Overall Ethereum ETF assets rose to $21.53 billion, with trading volume at $1.91 billion, signaling deepening institutional confidence in ETH’s dual function as a core protocol and a yield-generating asset through staking.
Speculative Rotation: Capital Shifts From BTC to ETH Perpetuals
Glassnode data reveals a clear rotation: Ethereum perpetual futures open interest dominance climbed to 40 percent, its highest since April 2023, and ETH perpetuals volume dominance briefly surpassed Bitcoin’s for the first time since 2022. This shift indicates traders are redeploying speculative capital into altcoins, seeking higher leverage and yield, consistent with the ETH/BTC ratio’s golden-cross confirmation and Ethereum’s recent 60 percent rally, which many interpret as a structural trend reversal.
Macro Liquidity Backdrop: M2 Expansion and the $200,000 Bitcoin Thesis
Despite short-term dips, macro models still forecast Bitcoin approaching $200,000 by year-end if global liquidity and M2 money supply trends persist. With total crypto market cap down to $3.92 trillion, the ETF inflows suggest fresh entrants rather than mere redistribution of existing holdings. Continued Federal Reserve accommodation could further propel Bitcoin’s value proposition as a macro hedge, making these ETF inflows a crucial barometer of institutional risk appetite.
Technical Levels: $117,000 Support Versus $120,000 Resistance
BTC-USD has traded in a narrow band between $117,000 and $119,000, establishing $117,000—last December’s ETF launch high—as critical near-term support. A decisive break above $120,000 could ignite momentum buying, while slipping below $117,000 risks tapping the mid-$110,000s. Exchange volume has ramped up by 10 percent alongside ETF inflows, providing ample liquidity for swing and intraday strategies and reinforcing these technical pivot points.
Positioning Strategy: Dual-Engine Crypto Buy Recommendation
Current ETF flow dynamics unveil a dual-engine market where Bitcoin remains the bedrock store-of-value vehicle and Ethereum emerges as the yield-seeking altcoin. The ongoing $157 million inflow into Bitcoin ETFs and Ethereum’s unbroken 17-day inflow streak both highlight strong institutional conviction. Investors are advised to maintain core BTC-USD allocations while tactically scaling into ETH-USD on pullbacks. Given robust inflow momentum, technical supports, and macro liquidity tailwinds, the strategic posture is to Buy both Bitcoin and Ethereum ETFs within current ranges, positioning for continued upside as institutional adoption deepens.
