After Outflows, Advisors Could Fuel Bitcoin’s Next Move

Bitcoin ETFs just lost their Snapstreak. 

Investors pulled money out of spot Bitcoin funds at the end of last week, breaking a seven-day stretch that brought in more than $1 billion, according to Morningstar data. Outflows on Thursday and Friday erased nearly half of those gains, but as the price of Bitcoin stabilizes, analysts expect increased inflows through the second half of the year. A major driver of those assets could be allocations from financial advisors. 

“The marginal buyer of a crypto ETF right now is probably a financial advisor,” said Matt Hougan, chief investment officer at Bitwise Asset Management. He noted that advisors who meet with clients quarterly may have been reluctant to show Bitcoin on statements during a bumpy first half. “Once they got past that Q2 mark, I think you started to see some allocations from people who think prices will likely be substantially higher by the end of the year.”

Seeking Clarity

Uncertainty around the Clarity Act is a likely driver of some of last week’s outflows. The bill would create a regulatory framework and give institutional investors the legal… well, clarity … they’ve been waiting for. “It’s been sort of a simultaneous tailwind and headwind over the past few weeks,” said Roxanna Islam, head of sector and industry research at TMX VettaFi. “It’s just really hard to tell where sentiment is now.” 

Some lower-cost Bitcoin ETFs, like the Grayscale Bitcoin Mini Trust ETF (BTC), are seeing fewer outflows than their more expensive peers, which may imply retail investors trying to pile back in at “what they see as bottom,” Islam said. “But overall, we’re still seeing a lot of ambiguity on the institutional side.” 

The price of Bitcoin has dropped over the last year, but has stabilized in the last month or so: 

• After peaking at more than $120,000 per coin in October of 2025, the price of Bitcoin dropped from around $80,000 in May to near $60,000 at the beginning of June. 
• The price hovered around $63,000 at the close of markets Tuesday. 

On the Up and Up. Despite the recent outflows, Bitcoin will probably continue to attract investors through the second half of the year, said Hougan. “A lot of those flows that we were seeing were true long-term investor flows that had been on the sidelines in Q1 and Q2, waiting for signs of stability,” he said. “They saw that stability, and they re-entered the market.”