U.S. spot Bitcoin exchange-traded funds recorded $924.5 million in net inflows during the week ended August 28, extending a run of strong institutional demand for regulated Bitcoin exposure.

The result marked the third consecutive week of net additions and followed an even larger $1.92 billion inflow in the prior week, indicating that investor demand remained elevated through late August.

Institutional Demand Remains Strong

BlackRock's iShares Bitcoin Trust led the market over the latest week, pulling in approximately $938.3 million. That figure exceeded the combined net total for the broader group, as other funds in the category recorded withdrawals.

The strong weekly result came despite a sharp reversal on August 28, when U.S. spot Bitcoin ETFs posted roughly $201.9 million in net outflows, ending a nine-session streak of consecutive inflows.

Bitcoin also came under selling pressure during that session, dropping below the $80,000 level after trading above it earlier in the week. Market participants continued to weigh interest-rate expectations and broader risk sentiment.

Crypto ETF Demand Broadens

Bitcoin was not the only digital asset drawing significant capital. U.S. spot Ether ETFs registered roughly $824 million in net inflows over the same week.

Combined, Bitcoin and Ether funds attracted nearly $1.75 billion. Additional demand also appeared across newer crypto ETF products, suggesting institutional interest was expanding beyond the two largest digital assets.

The continued inflows carry significance for the Bitcoin market, as ETF demand offers traditional investors a relatively straightforward route to gain exposure without directly holding cryptocurrency. Since U.S. regulators approved spot Bitcoin ETFs in January 2024, these products have become one of the main channels through which traditional finance accesses Bitcoin, making their weekly flows a widely tracked gauge of institutional sentiment.

At the same time, the late-week outflows underscore the market's sensitivity to macroeconomic developments and price volatility. Investors remain focused on Federal Reserve policy, inflation, and the broader direction of risk assets. Upcoming Fed commentary and inflation readings are likely to remain key variables observers watch alongside future weekly ETF flow reports.

For now, the three-week Bitcoin ETF inflow streak points to sustained institutional participation, even as short-term market conditions remain unsettled.