Crypto markets edge higher as ETF inflows return; policy updates and Ripple case closure add tailwinds

Bitcoin climbed back above $116,000 on Friday as spot exchange-traded fund flows turned positive for a second straight day and a flurry of policy headlines — including President Donald Trump’s executive orders on digital assets and the formal end of the SEC’s case against Ripple — buoyed sentiment.

U.S. spot bitcoin ETFs drew about $281 million of net inflows on Thursday, led by BlackRock’s IBIT, according to SoSoValue data. That followed a smaller return to the green on Wednesday after four successive days of outflows. Ether spot ETFs also added roughly $222 million on Aug. 7, extending a multi-day streak.

“ETF inflows are tentatively returning, offering a structural pillar as short-term volatility moderates,” BRN’s Head of Research, Timothy Misir, told The Block.

The policy backdrop also brightened. President Donald Trump signed an executive order directing the Labor Department and the SEC to pave the way for digital assets in 401(k) plans. He also separately signed an order aimed at curbing “unfair debanking” of crypto-friendly firms — measures that could widen mainstream access to regulated crypto products.

Meanwhile, the SEC and Ripple agreed to end their legal battle by dropping their respective appeals, leaving in place a prior court ruling that drew a line between certain institutional XRP sales and programmatic sales. The parley would close a long-running overhang for Ripple and U.S. crypto policy more broadly.

Under the surface: positioning, treasuries, and macro

Options traders maintained a cautious risk-on tone amid the developments. Downside hedges remain in place, but call demand has rebuilt near $118,000 for bitcoin and $4,000 for ether, Misir noted.

Institutional Flows have also spread toward Ethereum treasuries, which surpassed $10 billion in value across tracked entities late last month as several public companies like Tom Lee’s BitMine Immersion and Joe Lubi’s SharpLink Gaming accelerated accumulation.

On the macro front, the White House’s Fed nominations and pressure for easier policy continue to be a market subplot.  Trump this week picked economist Stephen Miran for a vacant Federal Reserve Board seat, a figure regarded as crypto-friendly and publicly supportive of broader market access to digital assets. Traders may view Miran’s appointment as a bullish signal as anticipation for a rate cut at September’s meeting builds.

Bitcoin traded around $116,600 while ether hovered above $3,900, The Block’s price page shows. XRP led gains among majors with an 11% jump following yesterday’s legal propellant, while a 4% rise in the GMCI Index 30 indicates a wide alt uptrend.

BRN’s analyst said bulls are eyeing a push back toward $120,000 for BTC if ETF inflows stay positive and policy momentum holds. “If Bitcoin is able to hold the $116,000 level over the next 48 hours, we could see another strong push toward $120,000 with ETH making another play for the $4,000 level.”