Why Institutions Are Scooping Up Bitcoin Despite $196M ETF Outflows

Sean Williams
Bitcoin (BTC)

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Key Takeaways:

  • Bitcoin ETFs saw $196M in net outflows as BTC prices corrected for the fourth day in a row.
  • Institutions are buying the dip, adding over 630 BTC on August 5 alone.
  • Analysts remain bullish long-term, with price targets up to $250K and calls for a shift beyond the four-year halving cycle.

U.S. Bitcoin spot ETFs experienced net outflows of $196 million on August 5, extending their losing streak to four consecutive trading days. The downturn coincides with a broader correction in the crypto market, as Bitcoin fell 3.5% over the past week. Leading the capital flight was Fidelity’s FBTC, which saw $99.11 million in withdrawals, followed by BlackRock’s IBIT, with over $77 million pulled out.

This marks a stark contrast to July’s performance, where ETF products recorded just five days of net outflows. Bitcoin had surged to a new all-time high of $123,100 on July 14, but has since cooled, trading around $114,000 as of this writing.

Institutions Buy the Dip Despite ETF Selling

Even as retail sentiment softens, institutional investors appear unfazed. On the same day as the major ETF outflows, companies added approximately 630 BTC—worth over $70 million—to their holdings. UK-listed Vaultz Capital revealed it had acquired another 47.85 BTC, bringing its total to 117.85 BTC.

This trend suggests that while ETF investors may be taking profits or repositioning, larger players are using the dip as an entry point—indicating confidence in Bitcoin’s longer-term value proposition.

Long-Term Bulls Stay the Course

Despite short-term price pressure, analysts remain optimistic about Bitcoin’s long-term outlook. Fundstrat’s Tom Lee reiterated his $250,000 price target for 2025, emphasizing growing institutional interest. He also suggested the traditional four-year halving cycle may be losing relevance due to increased corporate adoption.

Also Read: Robert Kiyosaki Warns of Bitcoin August Crash, Sees It as Prime Buying Opportunity

Matt Hougan, CIO of Bitwise, echoed this sentiment, forecasting that 2026—not 2025—may be Bitcoin’s breakout year. Meanwhile, author Robert Kiyosaki hailed Bitcoin as a “pure genius” investment, revealing that a small position had made him millions.

Market at a Crossroads

While ETF outflows highlight caution, underlying accumulation by institutions reflects continued belief in Bitcoin’s long-term potential. With macro uncertainty lingering and volatility expected, the market appears to be in a transitional phase—balancing short-term corrections with strategic long-term positioning.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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