U.S. spot Bitcoin ETFs are back in the spotlight, raking in more than $1 billion in net inflows over just two trading sessions, as investor nerves calmed following fresh geopolitical developments.
According to data from SoSoValue, inflows reached $407.78 million on July 2, surging even higher to $601.94 million on July 3 the strongest single-day inflow since May 23.
Among individual funds, Fidelity’s FBTC led the pack on Thursday with $237.13 million in new capital, followed closely by BlackRock’s IBIT, which pulled in $224.53 million. ARK 21Shares’ ARKB attracted $114.25 million, while Bitwise’s BITB, Grayscale’s GBTC, and VanEck’s HODL combined for $26.03 million in inflows. All other Bitcoin ETFs reported no activity on the day.
These robust inflows mark a sharp turnaround after spot Bitcoin ETFs posted their first daily outflow on July 1, snapping a 15-day streak of consecutive gains. The initial pullback followed the U.S. Senate’s passage of President Donald Trump’s so-called “Big Beautiful Bill” on July 1 a bill that, while not directly related to crypto, introduced uncertainty into broader financial markets.
Trade Deal with Vietnam Boosts Risk Appetite
Investor sentiment seems to have quickly rebounded, driven in part by optimism surrounding President Trump’s newly announced trade pact with Vietnam. Under the agreement, the U.S. will impose a 20% tariff on Vietnamese imports and a hefty 40% levy on goods transshipped through Vietnam, while eliminating tariffs on U.S. exports to the country. The move aims to rebalance trade relations and appears to have eased broader macroeconomic concerns, fueling gains across risk assets.
Meanwhile, President Trump has been ramping up pressure on Federal Reserve Chair Jerome Powell to cut interest rates more aggressively. He’s even floated the possibility of replacing Powell before his term ends in May 2026, mentioning names like Scott Bessent, Kevin Warsh, and Christopher Waller as potential successors who might support steeper rate cuts.
The political tension has contributed to a slide in the U.S. dollar, with markets increasingly pricing in looser monetary policy and potential shifts in central bank independence. As the dollar has weakened, appetite for risk assets including Bitcoin has strengthened, reflected clearly in the recent surge in ETF inflows.
Eyes on New Bitcoin Highs
Looking ahead, the influx of institutional money into Bitcoin ETFs could set the stage for a strong performance in July, potentially bucking Bitcoin’s historical tendency toward weaker price action in the third quarter. Analysts have already begun eyeing short-term price targets between $117,000 and $135,000, with some even forecasting that Bitcoin could hit as high as $200,000 by year-end.
As of press time, Bitcoin was trading at $109,044, down about 1% on the day.
