BlackRock Breaks ETF Drought As Bitcoin Flashes Fresh Rally Signal

BlackRock’s iShares Bitcoin Trust has recorded its strongest inflow in weeks, helping lift total U.S. spot Bitcoin ETF demand to $265.7 million and adding fresh support to Bitcoin’s latest recovery.

According to data from Farside Investors, BlackRock’s iShares Bitcoin Trust (IBIT) attracted $209.4 million in net inflows on July 7, ending a prolonged period of muted activity and intermittent outflows.

The renewed demand helped total net inflows across U.S. spot Bitcoin exchange-traded funds reach $265.7 million, extending the market’s positive streak to a second consecutive trading day.

The broader ETF market also posted gains. Fidelity’s FBTC added $9.7 million, Bitwise’s BITB brought in $4.8 million, ARK 21Shares’ ARKB recorded $33 million, and Grayscale’s Bitcoin Mini Trust received $42.3 million. Grayscale’s GBTC, however, continued to lose assets with $44.5 million in net outflows, according to Farside Investors.

The latest figures follow a difficult stretch in late June and early July when spot Bitcoin ETFs experienced mixed or negative daily flows. Even after the first positive session last week, IBIT still posted a $40.4 million daily outflow, making Monday’s rebound the fund’s first notable inflow after several weeks of weak momentum.

Institutional demand has returned to Bitcoin ETFs

Growing ETF demand arrived as Bitcoin traded between $61,275 and $64,597 during the day. Trading volume climbed more than 90% over the previous 24 hours, suggesting stronger participation from market participants as prices recovered.

Historically, inflows into BlackRock’s ETF have coincided with periods of price support during market weakness. The latest buying also came despite software intelligence firm Strategy selling approximately $216 million worth of Bitcoin, indicating that institutional demand through ETFs has continued to offset some selling pressure.

BlackRock has remained the largest player in the U.S. spot Bitcoin ETF market, with cumulative inflows exceeding $60 billion. Beyond Bitcoin products, the asset manager has also expanded its presence in tokenized finance. Last week, Ondo Finance completed the first live on-chain deployment of tokenized U.S. securities backed by BlackRock’s iShares Core S&P 500 ETF (IVV).

According to Ondo Finance, the underlying ETF shares remain with regulated U.S. custodians while Oasis Pro issues Ethereum-based tokens backed one-to-one by those securities under a structure designed to align with the U.S. Securities and Exchange Commission staff guidance issued in January 2025.

Several catalysts continue supporting market sentiment

Market research firm BIT, formerly known as Matrixport, said Bitcoin has entered July with historically favorable seasonal conditions. The firm also pointed to supportive comments from U.S. President Donald Trump about the country’s position in the crypto industry as another factor lifting investor sentiment.

Alongside those developments, BIT said market attention has increasingly turned to the CLARITY Act, which faces an Aug. 7 deadline before the U.S. Senate begins its summer recess. According to the firm, progress on the legislation could remain an important catalyst for digital asset markets in the coming weeks.

BIT also projected that Bitcoin’s first major resistance level sits at $65,955. With spot Bitcoin ETFs now posting back-to-back inflow days after weeks of weak demand, investors will be watching whether sustained institutional buying is enough to push the cryptocurrency above that level.