U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net inflows of $197.4 million for the week ending Friday, marking a decisive end to an eight-week streak of net outflows that began in May.

The iShares Bitcoin Trust ETF (IBIT.US) from BlackRock was the primary catalyst, attracting a substantial $291.9 million in a single week, which points to early signs of institutional capital returning to the market.

Fund flows showed significant divergence, with outflows recorded for Grayscale Bitcoin Trust ETF (BTC.US), Fidelity Wise Origin Bitcoin Fund (FBTC.US), and the ARK 21Shares Bitcoin ETF (ARKB.US).

In an interview with Cointelegraph, Markus Thielen, founder and CEO of 10x Research, noted that while Bitcoin's price has risen over 9%, the weekly net inflow of $197.4 million remains modest when considering the cumulative $8.26 billion withdrawn since May 11th.

Compiled data indicates that persistent outflows from ETFs and stablecoins, combined with seasonal factors typical for August and September, continue to cast uncertainty over the market recovery, suggesting headwinds have not fully dissipated.

Market opinions are divided. Jamie Coutts, chief crypto analyst at Real Vision, interprets early technical indicators as showing selling pressure is easing, and Bitcoin may have entered the latter stages of a bear market, though the cycle is not yet over.

Conversely, Russell Thompson, chief investment officer at Hilbert Capital, holds a more pessimistic view, forecasting that asset prices remain in a downtrend and could potentially test new lows in October.

In a parallel development, spot Ethereum ETFs also halted their eight-week run of losses, posting net inflows of $84.42 million for the week, primarily driven by products from BlackRock and Fidelity.

However, this inflow volume is still far below the total $1.2 billion in net outflows recorded since May 11th.

The scale of returning capital is currently insufficient to fully offset prior selling pressure, with seasonal influences and potential future sell-offs remaining critical variables.

Data from Farside Investors further underscores the fragility of current market sentiment, suggesting investors should remain cautious of near-term volatility risks.

While this shift marks a potential inflection point in sentiment, a genuine trend reversal will require sustained and larger inflows for confirmation.