US-listed cryptocurrency exchange-traded funds extended their recovery on August 5, with spot Bitcoin products recording a third consecutive day of net inflows while spot Ethereum ETFs returned to positive territory after a brief interruption in demand.
According to data compiled by Farside Investors, US spot Bitcoin ETFs attracted $244.4 million in net inflows during the session, marking the strongest daily inflow since late July and extending the category’s positive streak. BlackRock’s iShares Bitcoin Trust (IBIT) once again accounted for the majority of new capital, attracting $254.5 million, while smaller outflows from several competing funds partially offset those gains.
Spot Ethereum ETFs also rebounded after posting outflows the previous trading day. The category recorded $53.1 million in net inflows, led by BlackRock’s iShares Ethereum Trust (ETHA), which attracted $42.5 million. The return to positive flows suggests institutional investors continue to view Ether as an attractive long-term allocation despite recent market volatility.
The renewed ETF demand came as Bitcoin traded around $64,000, recovering from the weakness seen at the end of July. Although broader cryptocurrency markets remained cautious, institutional capital continued flowing into regulated investment products, reinforcing the role of ETFs as one of the market’s primary sources of demand.
BlackRock Continues to Dominate ETF Inflows
The August 5 data further highlighted BlackRock’s growing dominance in the US crypto ETF market. IBIT generated inflows exceeding the category’s overall total, indicating that subscriptions into the fund more than offset redemptions elsewhere. Since the launch of US spot Bitcoin ETFs in January 2024, BlackRock has consistently ranked among the industry’s leading issuers, benefiting from its institutional distribution network and strong liquidity.
Ethereum exhibited a similar pattern. ETHA accounted for most of the day’s inflows, suggesting investors remain comfortable increasing exposure through BlackRock’s products even as competition among ETF issuers intensifies.
The latest session also marked an improvement from the previous week, when Bitcoin ETFs experienced significant outflows amid broader market weakness. Three consecutive days of positive flows now suggest institutional sentiment has stabilized following the late-July selloff.
Institutional Demand Remains Resilient
ETF flows have become one of the most closely watched indicators of institutional participation in digital assets because they represent regulated investment vehicles that purchase and hold the underlying cryptocurrencies.
Unlike exchange trading volumes, which can be influenced by short-term speculation, ETF subscriptions typically reflect longer-term asset allocation decisions by wealth managers, financial advisers and institutional investors.
The divergence between Bitcoin and Ethereum flows seen earlier this week also narrowed on August 5, with both asset classes attracting fresh capital simultaneously. That shift may indicate investors are once again treating digital assets as a broader allocation rather than selectively favoring one network over another.
Analysts caution that daily ETF flows can fluctuate considerably and should not be viewed in isolation. Nevertheless, the latest figures suggest institutional demand remains resilient despite macroeconomic uncertainty and recent price volatility.
As the market enters the second half of August, investors will continue monitoring ETF activity alongside Federal Reserve policy expectations, regulatory developments and corporate adoption trends. Sustained inflows into both Bitcoin and Ethereum products could provide additional support for digital asset prices, while any renewed reversal in institutional demand would likely weigh on market sentiment.