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Spot Bitcoin (CRYPTO: $BTC) exchange-traded funds (ETFs) in the United States recorded their strongest weekly inflows in 10 months last week, as a sharp rally drew investors back into the market.
The US-listed spot Bitcoin ETFs attracted a combined $1.92 billion in net inflows, according to data from SoSoValue. It was the largest weekly haul since early October last year, when the funds attracted $2.71 billion in net weekly inflows.
The funds also recorded their strongest single-day inflow in more than three months on August 20, when investors poured in $606.3 million.
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The surge in demand came as Bitcoin climbed around 23% last week, marking its biggest weekly gain in more than three years. Bitcoin is currently trading at around 79,473, up around 3% over the past day.
“Bitcoin’s 20% weekly move was amplified by a short squeeze and a sharp move lower in long-term Treasury yields after the U.S. Treasury increased its long-dated bond buybacks. The SEC’s proposed crypto rules and President Trump’s renewed push for the CLARITY Act also helped reinforce the rally,” Taran Dhillon, head of digital assets at Kula, told Cryptoprowl.
However, he added that for ETF flows to remain strong, the macro backdrop will be critical. Taran said Bitcoin is still highly sensitive to changes in yields, dollar strength, macroeconomic uncertainties, and expectations for Federal Reserve policy. “We already saw how quickly ETF demand can turn when rate-cut expectations weaken,” he said.
The turnaround is particularly notable after the funds suffered nearly $390 million in net outflows the previous week.
Markus Levin, co-founder of XYO, told Cryptoprowl that he expects spot Bitcoin ETF flows to remain positive this week, although probably with more volatility than last week. He said the key factors will be whether broader liquidity conditions remain supportive and whether investors continue to see current levels as an attractive entry point.
Source: finance.yahoo.com

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