Bitcoin ETFs Draw Renewed Investment Interest as Token Remains 50% Below Record High

July 20, 2026 wired24

US-listed spot Bitcoin exchange-traded funds are experiencing a second consecutive week of net inflows, following nearly two months of capital outflows, raising optimism that the cryptocurrency market may be stabilizing.

The 13 spot Bitcoin ETFs attracted $75.7 million last week, adding to the $197.4 million gained the week before. This comes even as investors pulled $424.7 million from the funds last Monday amid heightened military tensions between the US and Iran.

This change in momentum, coupled with inflows into Ether-related ETFs, the second-largest cryptocurrency, could suggest a revival of positive sentiment in the market, as noted by Richard Galvin, executive chairman at crypto investment firm DACM.

“I believe this indicates we are reaching a bottom,” Galvin remarked. “Given their size and diversity, the ETFs serve as a reliable indicator of overall sentiment toward Bitcoin and the broader sector. A turnaround after eight weeks of decline, confirmed over the last two weeks, is indeed a positive development.”

Bitcoin has reclaimed its position above the 200-week moving average, which is about $63,300 and is considered a critical threshold between a sustained bearish or bullish market. For several weeks, the asset has been largely contained within the $60,000 to $65,000 range due to broader macroeconomic uncertainties.

In Asia today, Bitcoin demonstrated resilience, briefly surpassing $65,000 during early trading despite new US strikes on Iran. However, the ongoing conflict raises inflation concerns.

The potential for the US Federal Reserve to increase interest rates may be hindering a full revival of institutional investment, according to Damien Loh, chief investment officer at Ericsenz Capital. The expected passage of the Clarity Act, a long-anticipated US market-structure bill, before Congress’s August recess could act as a catalyst for Bitcoin’s upward momentum, he noted.

Bitcoin’s recent price trends reflect “strong support, even amid declines in risk assets and renewed hostilities in the Middle East,” Loh stated. “The US-Iran situation is significant, especially as it elevates interest rates, impacting all risk assets.”

Since early June, Bitcoin has decreased by roughly 10%, coinciding with Strategy Inc.’s revelation that it sold a small portion of its holdings for the first time since 2022. Founder Michael Saylor had positioned the company as a consistent Bitcoin buyer, committing to continue acquiring cryptocurrency using equity sale proceeds and to never sell.

Strategy sold $263.5 million of common stock during the week ending July 19 but made no Bitcoin purchases, according to a Monday filing. Instead, the company increased its cash reserves to $3.23 billion, highlighting a recent shift toward maintaining liquidity rather than automatically reinvesting into the token.

With Bitcoin currently trading at approximately half of its peak of $126,000 achieved in October, it has become increasingly challenging for Strategy to meet its dividend obligations. Saylor has expressed a greater willingness to sell the token as needed, and the company disclosed on July 6 that it sold another $216 million worth of Bitcoin, significantly exceeding the earlier sale of $2.5 million.