Bitcoin’s comeback is pulling crypto ETFs back into favour after months of weakness. The cryptocurrency has climbed from the low-$60,000s to around $80,000, with improving macro conditions, short covering and regulatory optimism helping drive the rebound. ETF flows suggest investors are not only returning to Bitcoin, with demand also spreading to Ether and major altcoins.
Bitcoin demand returns
Bitcoin gained nearly 20% last week, while its recovery since the beginning of August reached roughly 25%. A weaker dollar and expectations for greater liquidity in the Treasury market helped revive the “debasement trade,” where investors seek alternatives such as Bitcoin and gold.
Short sellers added fuel to the rally as rising prices forced some traders to buy Bitcoin to close bearish positions. Regulatory developments provided another tailwind, with President Trump again calling for Congress to pass a version of the CLARITY Act.
More importantly, fresh money is returning through ETFs. U.S. spot Bitcoin ETFs attracted roughly $2.0 billion last week, their strongest weekly inflow in 10 months. Trading volume more than tripled to around $22 billion too.
BlackRock’s iShares Bitcoin Trust led the recovery and returned to the top 10 U.S. ETFs by weekly flows. However, spot Bitcoin ETFs remain roughly $2.5 billion in net outflows for 2026, meaning another few strong weeks may be needed to establish a lasting reversal.
Altcoins join rally
Investor appetite is also moving beyond Bitcoin. Spot Ether ETFs collected about $697 million last week, marking their strongest week of 2026 despite remaining slightly negative year to date. Solana ETFs brought in roughly $90 million, while XRP products attracted around $70 million. XRP ETFs have now recorded six consecutive positive weeks, compared with eight for Solana products.
That broader participation could prove important. Rather than Bitcoin simply bouncing after a steep selloff, simultaneous inflows across several crypto assets suggest investors are becoming more comfortable taking risk again. The next test is whether ETF demand continues after the initial rally and whether Washington can turn its friendlier regulatory approach into lasting legislation.
