U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their first day of net withdrawals in more than a week on July 23, bringing a seven-session inflow streak to an end.
According to SoSoValue, investors pulled $225.18 million from Bitcoin ETFs after the funds attracted nearly $1 billion in fresh capital over the previous seven trading days. In contrast, U.S. spot Ethereum ETFs continued to gain traction, adding $26.32 million in net inflows and extending their winning streak to five consecutive sessions.
The reversal came as Bitcoin briefly slipped below the $65,000 mark amid broader market weakness. According to CoinMarketCap, the cryptocurrency traded as low as $64,600 during the session before recovering.
BlackRock leads outflows
SoSoValue’’s data shows BlackRock’s iShares Bitcoin Trust (IBIT) saw the biggest withdrawal of the day, with $202.48 million leaving the fund.
Selling wasn’t limited to BlackRock. Fidelity’s FBTC lost $5.64 million, Bitwise’s BITB recorded $7.03 million in outflows, while ARK 21Shares’ ARKB shed $4.30 million. Franklin Templeton’s EZBC and WisdomTree’s BTCW also posted withdrawals of $5.61 million and $5.13 million, respectively.
Morgan Stanley’s MSBT was the only Bitcoin ETF to attract meaningful inflows, adding $5.01 million, while several other funds finished the day with no net flows.
Despite Thursday’s setback, spot Bitcoin ETFs have still brought in roughly $274 million this week. Since their launch, the funds have attracted $51.63 billion in cumulative net inflows and now manage $78.82 billion in assets, equivalent to about 6.03% of Bitcoin’s market capitalization.
Bitcoin sentiment weakens
The ETF outflows came as renewed geopolitical tensions and a selloff in U.S. equities weighed on broader risk assets. Bitcoin briefly dipped to around $64,600 before climbing back above $65,000. Market sentiment also weakened. The Crypto Fear & Greed Index dropped three points to 28, remaining in the “Fear” zone, indicating investors have become more cautious following the recent price pullback.
Still, the latest withdrawals come after a strong run for Bitcoin ETFs, suggesting institutions may be taking profits rather than stepping away from the market entirely.
Ethereum inflows continue
While Bitcoin funds saw profit-taking, U.S. spot Ethereum ETFs extended their positive momentum with $26.32 million in net inflows on July 23. Fidelity’s FETH led the charge with $14.93 million in new inflows, underscoring continued institutional demand for Ether even as the broader market grapples with uncertainty.
The difference in Bitcoin and Ethereum ETF flows suggests investors are moving money within the crypto market rather than pulling out completely. With markets still reacting to economic and geopolitical developments, upcoming ETF flow data will show whether Bitcoin’s recent outflows were temporary or the start of a longer trend.
Also Read: Bitcoin Holds $65K as Spot ETF Inflows Reach $818M in Six Days
