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U.S. spot Bitcoin ETFs are enjoying their strongest comeback of 2026, after several months of sluggish demand. Over an eight-day stretch, funds have seen about $2.8 billion — approximately $232 million on August 26 — in inflows, beating August’s total above $3 billion. Demand surged when Bitcoin price broke the $80,000 mark.
The move also coincided with a change in the macro environment in the United States, with market strategist Jonathan Rose attributing Bitcoin’s rebound to Treasury buybacks and declines in long-term interest rates and the dollar. August’s attempts to repair the annual ETF picture: spot Bitcoin products remain in a net outflow position for 2026.
More importantly, ETF buying already picked up, taking in $297.5 million on August 17 and $189.3 million the next day. The Treasury’s instructions to boost long-end liquidity-support buybacks were not issued until August 19, meaning demand was already returning.
Payments then soared to approximately $517.2 million on August 19 and $606.3 million the next day, as Bitcoin broke out of resistance that had been present for months.
The Treasury will double the maximum size of the liquidity-support buybacks for long-dated nominal securities from $2 billion to $4 billion per operation for the 10-to-20-year and 20-to-30-year sectors from 9 September through 4 November.
This was meant to improve liquidity and market functioning, but it was not Federal Reserve quantitative easing, and larger-scale operations had not begun.
The bond and currency markets reacted quickly, with long-term rates dropping and the dollar falling, both of which benefit non-yielding assets. The yield on the 30-year Treasury bond fell from 5.31% on August 17 to 5.19% on August 26. As of 27 August, the 10-year Treasury yield was 4.67% on the view that inflation, fiscal risks and Federal Reserve expectations continue to weigh in the other direction.
This is important for Bitcoin as it pays no interest, and rising real Treasury yields could pull investors out of government stocks, while falling yields could push them into equities, gold or Bitcoin.
Dollar weakness can reinforce that rotation when the focus of the markets reverts to currency debasement and fiscal concerns, but the recent price action doesn’t conclusively suggest that Treasury buybacks were responsible for that rally.
U.S. ETF data therefore remains critical, but the eight-day streak would suggest renewed demand is back, even if annual flows remain negative at the moment. Much of the recent buying has gone into BlackRock’s IBIT. While flows into competing products have been mixed, increased participation would also strengthen the institutional case that demand is becoming sticky.
It’s also worth watching to see if ETF inflows continue in September, how yields and the dollar react to larger Treasury buybacks starting September 9, and if Bitcoin can hold above $80,000 despite a potential macro regime shift.
While Federal Reserve expectations and inflation data can still reverse this backdrop, the rally is largely driven by institutional demand, rather than general liquidity conditions.
Source: bitcoinfoundation.org