Fluctuations in spot Bitcoin ETFs were traditionally considered the "mirror" of institutional investors' sentiment, with strong outflows interpreted as a loss of interest and inflows as renewed demand. However, market reality has now changed, as institutional funds move on many different fronts.
The data, therefore, shows that US spot ETFs recorded inflows of 999 million dollars over seven consecutive days from July 14 to July 22, only to be followed by four days of outflows totaling 526 million dollars up to July 28. In a broader time frame from May 29 to July 28, net outflows reached 4.46 billion dollars, while cumulative net inflows since the start of their operation remained close to 51.4 billion dollars.
At the same time, investment vehicles are evolving:
1) BlackRock's IBIT recorded cumulative net inflows of 60.3 billion dollars up to July 28.
2) The newer iShares Bitcoin Premium Income ETF (BITA), launched in June, reached 59.9 million dollars in net assets, offering a distribution yield of 12.1% through covered calls.
3) Crypto-backed lending reached approximately 67 billion dollars in the first quarter of 2026, marking an increase of nearly 50% on an annual basis. A characteristic example is the asset securitization of 188 million dollars by Ledn, which obtained the first investment grade rating from a global rating agency.
As market experts point out, investors can now hold Bitcoin as collateral while remaining neutral regarding short-term price fluctuations, redefining the concept of "institutional adoption."
The risks
The monetary policy of the Fed, which maintained interest rates at 3.50% to 3.75% on July 29 amidst a high inflation environment, creates pressures, limiting the appetite for speculative duration and widening credit spreads.
In an optimistic scenario, Bitcoin is treated as an autonomous credit asset class with increased issuances and lower borrowing interest rates. In a pessimistic scenario, massive ETF outflows, wider credit spreads, and collateral calls could act cumulatively, bringing hidden credit risks to the surface.
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