Bitcoin ETF Selling Pressure Eases as Institutional Flows Show Signs of Recovery

• Galaxy Research reported easing Bitcoin ETF outflows as institutional fund flows improved, while U.S. spot Bitcoin ETFs returned to net inflows.
• Bitcoin recovered above $64,000 as technical resistance approached, while derivatives markets reflected improving sentiment through stronger demand for call options.
• Despite stronger ETF inflows and whale accumulation, cumulative fund flows remain negative, leaving broader market confirmation dependent on sustained buying pressure.

 

Bitcoin exchange-traded funds are showing early signs of stabilization as institutional selling pressure begins to fade, with Galaxy Research reporting a notable improvement in fund flows despite cumulative balances remaining negative. The shift has renewed attention on whether institutional demand is gradually returning as Bitcoin trades above key support levels.

According to Galaxy Research, the 30-day rolling net flow indicator for U.S. spot Bitcoin ETFs has reversed direction after falling deeply into negative territory. The firm’s data also showed cumulative ETF flows improving from their lowest levels earlier this year, suggesting that redemption pressure has started to weaken.

This trend also appeared in Galaxy Research’s Bitcoin ETF flows by issuer chart. According to the research firm, individual issuers recorded stronger inflows after months of persistent withdrawals. While total cumulative flows remain below previous highs, the latest data indicates that selling activity has slowed considerably.

Additionally, institutional participation received another boost from recent fund performance. Data from SoSoValue showed that U.S. spot Bitcoin ETFs attracted $90.44 million in net inflows on July 10. Meanwhile, U.S. spot Ethereum ETFs added $18.43 million during the same session.

The positive inflow marked the first net gain following nearly two months of sustained outflows. Consequently, market participants are closely watching whether this trend develops into a longer period of renewed institutional demand.

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Bitcoin Price Recovery Aligns With Improving ETF Sentiment

Bitcoin has also recovered alongside the improving ETF flow data. The cryptocurrency traded around $64,100 after rebounding from a July 8 low of $61,453. That recovery has placed attention on the next technical resistance near $65,136, where the daily 50-day moving average currently sits.

A successful move above that level could strengthen bullish momentum toward the psychological $70,000 mark. However, analysts note that Bitcoin still remains inside one of its longest trading ranges in history.

Market data shows the current $60,000 to $70,000 range ranks among Bitcoin’s longest periods inside a $10,000 price band. Only the previous $10,000 to $20,000 and $20,000 to $30,000 trading ranges lasted longer.

Besides improving ETF activity, derivatives markets also reflected changing sentiment. On Deribit, downside protection became less expensive as put option skews weakened during Bitcoin’s rebound. Traders showed strong interest in call options at $62,000, $65,000, and $67,000, while the $56,000 put also attracted notable activity.

Conclusion

Although Galaxy Research’s data points to easing ETF outflows and institutional demand appears to be recovering, broader market signals remain mixed. Whale accumulation has supported sentiment, while Bitcoin’s improving price structure adds optimism. Even so, cumulative ETF flows remain below previous peaks, indicating that stronger confirmation may require sustained inflows and a decisive move above key resistance levels.

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