US-listed spot Bitcoin exchange-traded funds ended a four-day redemption streak on July 29, 2026, recording $32.1 million in net inflows as the Federal Reserve maintained interest rates following its two-day policy meeting.
The recovery in fund flows followed more than $500 million in combined outflows across four consecutive trading sessions, including $49.75 million in net redemptions on July 28, according to data from SoSoValue and CoinGecko.
The shift coincided with the Federal Open Market Committee holding the fed funds target rate between 3.50% and 3.75% for a fifth consecutive meeting under Chair Kevin Warsh, according to Kraken economic data.
Despite the single-day rebound, spot Bitcoin funds remained in negative territory for the week with $29.29 million in net outflows, while monthly cumulative inflows stood at $204.7 million.
Trading activity pushed total historical net inflows across US spot Bitcoin ETFs to $51.36 billion as Bitcoin traded near $63,990, down from its record peak of $126,198 established in October 2025.
Institutional Expansion and Market Sentiment
Institutional asset managers expanded offerings into alternative digital assets.
Morgan Stanley introduced its Ethereum Trust (MSSE) and Solana Trust (MSOL) on NYSE Arca, featuring a market-leading 0.14% expense ratio with integrated staking reward distribution.
Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said client interest prompted the expansion across decentralized asset classes.
Market participants also weighed potential inflows from wealth advisors to sustain broader adoption during the second half of the year.
Matt Hougan, chief investment officer at Bitwise Asset Management, explained that quarterly client reporting dynamics influenced timing for new fund allocations, with some advisors entering after Q2 reporting.
He pointed out that underlying institutional participation remained steady despite short-term market fluctuations, with capital returning as price movements stabilized.
Analyzing product-level shifts, researchers observed retail interest migrating toward lower-cost investment vehicles during market consolidation.
Roxanna Islam, head of sector and industry research at TMX VettaFi, noted ongoing ambiguity in institutional sentiment despite retail activity in lower-cost funds.
In contrast to Bitcoin's daily gain, spot Ether ETFs recorded $18.65 million in net outflows on Wednesday, though monthly net inflows for Ether funds maintained a higher total of $342.9 million.
