Bitcoin sees massive ETF inflows amid regulatory shifts in US and Japan

Bitcoin and related digital assets are seeing significant institutional and regulatory shifts. In the United States, spot Bitcoin ETFs recorded net inflows of $1.61 billion over a four-day period ending August 20, with BlackRock’s IBIT accounting for $503 million of the total on the final day. This surge in demand occurred alongside U.S. Treasury auctions for inflation-protected securities (TIPS) offering real yields around 2.97%.

In Japan, legislative and tax reforms are paving the way for potential Bitcoin ETFs and investment trusts. Amendments to the Financial Instruments and Exchange Act and the 2026 tax reform outline aim to integrate crypto-assets into existing financial frameworks, potentially allowing investors to access Bitcoin through standard brokerage accounts rather than specialized exchanges.

Market activity also shows concentrated interest in Bitcoin, which accounted for 77.4% of the $1.297 billion flowing into U.S. crypto-related ETPs between August 17 and 19. Meanwhile, Metaplanet, a Japanese company holding Bitcoin as a treasury asset, saw its stock price surge by nearly 19% on August 21. Additionally, the SEC is finalizing a $123.1 million distribution plan for investors affected by the 2022 Terra collapse.