Institutional capital is pouring into crypto investment instruments heading into the end of this week. Spot Bitcoin ETFs in the United States recorded net inflows of $608.3 million during Thursday’s trading session on August 20, 2026. This figure from SoSoValue complements the previous day’s inflows of $517 million, bringing the combined capital flow over two sessions to more than $1.1 billion.
Ethereum ETFs also posted daily inflows of $220.8 million on Thursday, a record high in 203 trading sessions or 296 calendar days. The last time Ethereum recorded higher inflows was on October 28, 2025, at $246 million.
This series of investment records did not form in a vacuum.
Direct Impact of Government Bond Policy
The influx of funds began with the United States Department of the Treasury’s decision on August 19, 2026, announcing plans to double the maximum size of long-term government bond buybacks. The previous limit of $2 billion was raised to a minimum of $4 billion per operation, active from September 9 to November 4.
This bond announcement had the effect of weakening the US dollar and putting downward pressure on long-term Treasury yields. This sentiment was also reinforced by political maneuvers from the White House. During an event involving crypto executives on August 19, Donald Trump asked Congress to immediately pass a fair version of the CLARITY Act.
$3 Billion in Short Positions Burned
This combination of macroeconomics and politics triggered a sharp rally. Bitcoin’s price surged 7.9% in 24 hours to touch $75,133 at the time of writing, while Ethereum followed suit with a 4.6% increase to $2,357.
This spike dealt a heavy blow to those betting the other way. According to data from CoinGlass, Bitcoin’s move past $70,000 triggered the forced liquidation of nearly $3 billion in short positions. From a technical standpoint, Bitcoin broke through its 200-day Simple Moving Average (SMA) at $68,967, reinforcing signals of a long-term bullish trend.
Throughout this August, total net inflows into Bitcoin ETFs have reached $2.07 billion, surpassing the $1.6 billion accumulated in the past week and setting a record high for 2026. For traders still taking short positions against institutional flows, this week’s $3 billion in losses proves that opposing macroeconomic sentiment can be fatal. Reported by Cointelegraph.
Also read: How to Read Candlesticks for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
