U.S. spot Bitcoin ETFs attracted more than $1 billion in net inflows this week as Bitcoin approached $72,000 and Ether posted a sharp rally.
The strong demand reflects improving sentiment across the crypto market, supported by lower bond yields, a weaker U.S. dollar and renewed focus on cryptocurrency regulation in Washington.
Bitcoin ETFs Attract $517 Million in One Day
U.S. spot Bitcoin exchange-traded funds recorded $517.2 million in net inflows on Wednesday, marking their strongest single-day performance since May 4.
The latest inflows pushed total net investment into Bitcoin ETFs for August to approximately $1.47 billion.
Since Monday, investors have added around $1 billion to the funds.
That already makes this their strongest week for net inflows since the week ending January 16, when Bitcoin ETFs attracted roughly $1.42 billion.
Bitcoin Price Approaches $72,000
The increase in ETF demand came alongside a powerful rally in cryptocurrency prices.
Bitcoin traded close to $72,000 on Thursday, gaining around 11% over the previous 24 hours.
Ether also significantly outperformed, climbing approximately 19% to around $2,286.
The moves suggest that renewed investor interest is spreading beyond Bitcoin into the wider cryptocurrency market.
U.S. Treasury Move Boosts Crypto Sentiment
The crypto rally followed a decision by the U.S. Treasury to increase its buyback operations for longer-dated government debt.
The announcement helped push Treasury yields and the U.S. dollar lower.
Jonatan Randin, senior market analyst at PrimeXBT, said the market appeared to interpret the Treasury action primarily as a currency-related development rather than a signal of stronger economic growth.
Gold and silver also outperformed equities during the session.
Bitcoin Trades Alongside Gold and Silver
Randin noted that Bitcoin’s behavior was more closely aligned with gold and silver than with traditional risk assets.
That pattern could indicate renewed interest in the so-called currency debasement trade, where investors seek assets they believe could preserve value as concerns over government debt, liquidity and currencies increase.
Bitcoin’s fixed supply has helped support its reputation among some investors as an alternative store of value.
Trump Renews Focus on Crypto Regulation
Regulatory developments also contributed to improved crypto market sentiment.
President Donald Trump called on Congress to move forward with the CLARITY Act during a White House event involving cryptocurrency industry leaders.
The proposed legislation aims to establish a clearer regulatory framework for digital assets in the United States.
Greater regulatory clarity could encourage additional institutional participation in the crypto market if lawmakers are able to reach an agreement.
Ether ETFs Also See Strong Inflows
Spot Ether ETFs also benefited from the broader improvement in investor demand.
The funds recorded approximately $189.2 million in net inflows on Wednesday.
That brought total Ether ETF inflows for the week to around $291.5 million.
The combination of strong Bitcoin ETF flows and renewed demand for Ether products suggests institutional interest in digital assets is strengthening across multiple parts of the market.
Institutional Crypto Demand Strengthens
The latest ETF data highlights a notable improvement in institutional demand as Bitcoin approaches $72,000.
Lower Treasury yields, a softer dollar and renewed expectations for clearer U.S. crypto regulation have created a more supportive environment for digital assets.
Investors will now be watching whether Bitcoin ETF inflows can remain elevated and whether Bitcoin can sustain its momentum near the $72,000 level.
