Just welcomed the largest single-week inflow since April, Bitcoin ETFs experienced a net outflow of $390 million, and institutional sentiment has turned bearish again.

Last week, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their largest single-week net outflow since the end of June, reversing the strong start of August. According to compiled data, for the week ending August 10, 13 Bitcoin ETFs listed in the U.S. experienced a total net outflow of $389.7 million, following a net inflow of $853.5 million in the previous week. The first week of August had set a record for the largest single-week fund inflow since April, and at the end of July 2026, there was a large-scale firmware vulnerability attack targeting Coldcard hardware wallets. This attack not only caused significant financial losses but also undermined market trust in the safety of cryptocurrency "self-custody," reigniting investor interest in protecting digital assets through traditional financial channels. Esme Pau, Head of Capital Markets and Policy at the blockchain security firm CertiK, stated, "Last week's net outflow from ETFs reflects the overall gloomy sentiment in the Bitcoin market. The temporary inflow following the Coldcard hacker incident now appears to be more of an anomalous fluctuation, while broader institutional sentiment remains cautious, if not pessimistic." As ETF selling pressure resurfaced, Bitcoin's price hovered around $63,000, down about 50% from its all-time high set last October. Ongoing interest rate risk continues to suppress market sentiment, and the lack of legislative progress on the proposed crypto market structure bill, the Clarity Act, has led potential buyers to adopt a wait-and-see approach. Bitcoin ETFs provide investors with a way to gain exposure to Bitcoin prices without the need to directly hold or manage tokens. Although there were three weeks of slight net inflow last month, the underlying confidence remains weak. Recently, the Coldcard brand of offline wallets from Toronto-based Coinkite was found to have security vulnerabilities, with predictable issues in its key generation mechanism, shaking market trust in a solution that should be regarded as one of the safest options for storing crypto assets. In this context, some investors believe the logic of obtaining Bitcoin exposure through traditional asset channels has strengthened. Last week, Bitcoin prices remained nearly flat, with the volatility range narrowing to within 2%. As of the time of reporting, the price was approximately $63,650. The implied volatility index, which measures expected volatility in Bitcoin (based on option prices for the next 30 days), reported around 37 on Monday, below the average level for the year and far lower than the peak of 82.2 reached in early February. ETF fund flows are an important indicator of institutional demand, as such products have become one of the main channels for traditional investors to gain Bitcoin exposure. If net outflows continue, it may exert pressure on both the price and liquidity of Bitcoin, especially against the backdrop of low demand from other sources.