US-based spot bitcoin ETFs experienced a truly dramatic recovery this week, recording a net inflow of $1.92 billion, their strongest weekly performance since October 2025. According to SoSoValue's historical data, this figure surpasses the previous record of $1.42 billion recorded in January, and is the second strongest week after the $2.71 billion inflow in the week of October 6-10, 2025.

The speed of this recovery is truly remarkable, as just a week earlier, the opposite was true; in the week of August 10-14, ETFs experienced a net outflow of $389.7 million, the largest single-week outflow in six weeks. So the market went from a week of outflows to the strongest inflow of the following week, a complete reversal exceeding three billion dollars.

The catalyst behind this movement is clear: the historic short squeeze on August 19th and the events that triggered it. The US Treasury Department's doubling of long-term bond buyback operations, the crypto summit at the White House, and Trump's supportive statements towards crypto propelled Bitcoin from a low of around $64,000 to over $69,000, and then to $79,000. This rally was driven not only by short position closures but also by genuine ETF demand, with consecutive daily inflows of $517 million on August 19th, followed by $606 million on August 20th and $307 million on August 21st – representing an uninterrupted positive flow for five sessions.

BlackRock's IBIT continued to be the driving force this week, single-handedly leading the market for much of the week, accounting for approximately 78% of daily inflows on August 21st. Ethereum ETFs also showed a parallel recovery, recording $697.47 million in inflows in the same week, remaining positive for five consecutive sessions, indicating that the recovery is not limited to bitcoin alone, but that risk appetite is returning across a broader spectrum.

The cumulative figures you mentioned also align with the overall picture, but it's important to add context here: prior to this strong week, ETFs were still in a net outflow period since the beginning of the year, with some estimates suggesting this gap reached billions of dollars. So this weekly record could be a real turning point after a long and challenging period, but a single week itself is not a guarantee of a lasting trend change; weekly inflows have exceeded $1 billion multiple times during past strong rally periods.

For those tracking bitcoin ETF flows through Gate, the key point to watch is how things unfold in the weeks following these record-breaking weeks, because it's not just a single week's surge that matters, but whether these inflows will continue steadily in the coming months, and especially how much of the net outflow gap accumulated since the beginning of the year can actually be closed.

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