Bitcoin rebounded from $62,000 and climbed to $66,900 before its upward momentum faded. The cryptocurrency faced rejection near $66,000 and posted lower closes for two consecutive sessions, briefly dropping to $65,500. At press time, Bitcoin traded at $65,602, reflecting a 1.15% daily decline.

Despite this price weakness, on-chain data revealed renewed activity tied to BlackRock's iShares Bitcoin Trust (IBIT), one of the largest U.S. spot Bitcoin ETFs and a key vehicle through which traditional investors can gain regulated exposure to BTC.

IBIT-Linked Wallet Accumulates 4,259 BTC

Major institutional investors had largely maintained a cautious stance throughout Bitcoin's extended period of softness, with some reducing exposure and adding further pressure to the market. However, recent wallet activity pointed to fresh demand linked to BlackRock's ETF.

According to Onchain Lens, an IBIT-associated wallet received 2,469.25 BTC from Coinbase Prime, valued at $163.1 million. Two days prior, the same wallet had received 1,789.85 BTC worth $119 million. Combined, the two transfers totaled 4,259.10 BTC, or approximately $282.1 million.

These movements should not automatically be interpreted as direct BlackRock spot purchases, as they may reflect ETF creation, redemption, custody rebalancing, or settlement activity. Coinbase Prime serves as a major institutional platform for custody and trading services, making transfers from its wallets relevant for tracking ETF-related operations but not sufficient on their own to determine the underlying transaction type.

Spot Bitcoin ETF Flows Improve

The wallet activity coincided with improving inflows into U.S. spot Bitcoin ETFs. Over the past week, these products recorded positive net inflows across five funds. BlackRock's IBIT alone attracted $38 million. As a result, the funds' combined net assets rebounded to $80.36 billion, signaling renewed capital deployment through regulated vehicles.

ETF flow data is closely watched because spot Bitcoin ETFs must hold Bitcoin to back issued shares, while redemptions can reduce holdings or shift balances between custodial wallets. This makes fund-flow trends and on-chain settlement activity important context for assessing institutional participation, even when short-term price action remains weak.

Bitcoin Faces Persistent Weakness

Despite the positive ETF flows, broader U.S. institutional demand remained subdued. The Coinbase Premium Index has stayed negative since early May, extending its decline for nearly two months. A negative premium indicates weaker buying pressure on Coinbase relative to offshore exchanges, though it does not confirm that institutions are broadly selling.

Bitcoin's price momentum also continued to deteriorate. The Chande Momentum Oscillator fell from 51 to 13, confirming that bullish momentum had weakened considerably. The indicator remained above zero, suggesting decelerating momentum rather than a confirmed bearish reversal.

For now, the key signals to monitor are whether ETF inflows continue, whether the Coinbase Premium Index returns to positive territory, and whether momentum indicators stabilize after the recent decline. Together, those metrics may offer clearer evidence of whether regulated ETF demand is strong enough to offset the broader weakness visible in spot-market activity.