Bitcoin ETF Outflows Reach A Historic Milestone

The crypto market has just crossed a symbolic threshold, but this resurgence of confidence masks a much more fragile reality. While crypto ETFs were supposed to sustainably establish institutional capital in the market, their latest financial reports reveal weaknesses that question the strength of this dynamic. This observation comes at a pivotal moment, where Federal Reserve decisions and US macroeconomic uncertainties continue to guide global flows. A combination that could weigh on the trajectory of these assets in the coming months.

Bitcoin ETFs: The black streak of eight weeks

The US spot Bitcoin-backed exchange-traded funds have just suffered an unprecedented setback in regulated markets. According to data compiled by SoSoValue, last week’s capital movements break down as follows :

• A sharp loss of about $527 million over the four trading days of a week shortened by the American national holiday ;
• An eighth consecutive week of negative net flows, which now stands as “the longest series of weekly outflows in the history of these funds” ;
• Cumulative net losses for these products now total $5.53 billion since the beginning of the year ;
• A radical change in dynamics since before the start of this bearish phase in mid-May, these financial vehicles had never aligned more than five consecutive weeks of net withdrawals.

Yet, this disastrous weekly balance hides a notable technical rebound at the very end of the period. During the session on Thursday, July 2, Bitcoin ETFs indeed attracted $221.72 million in net inflows, marking their “largest daily inflow since May 5”. This rebound ended an agony of ten consecutive sessions of capital outflows, a sequence that literally drained around $2.71 billion.

The Fidelity Wise Origin Bitcoin Fund (FBTC) largely dominated this respite session with $165.96 million in inflows, followed by ARK and 21Shares product (ARKB) which captured $91.84 million. Observers also note a general slowdown in the pace of outflows, as the previous week had recorded a much larger siphoning of $1.79 billion.

BlackRock under pressure: record unrealized losses

While most issuers were catching their breath on Thursday, asset management giant BlackRock was a worrying exception in the markets. Its flagship fund, the iShares Bitcoin Trust (IBIT), was the only ETF to record negative flows during this last session, suffering a loss of $40.43 million. This underperformance marks the eleventh consecutive day of withdrawals for IBIT. Such outflows have cut the fund by nearly $2.2 billion over this period alone.

Now, the Wall Street colossus shows $44.91 billion in net assets, backed by $59.99 billion in cumulative inflows since its launch. This constant decline is partly explained by a critical financial reality for shareholders: “the average IBIT investor is currently facing an unrealized loss of about 40%”.

Ethereum and Hyperliquid change pace

This institutional investor capitulation is not limited to bitcoin and also spreads to other ecosystem assets. Spot Ethereum ETFs also recorded an outflow of $13.67 million over the week, closing their eighth consecutive week in the red and matching their historical outflow record established between late February and mid-April 2025.

Furthermore, the Ether funds, which show a net loss of $1.44 billion since January, have nevertheless limited the damage thanks to two consecutive inflow days on Wednesday and Thursday. Meanwhile, the nascent Hyperliquid ETF sector is experiencing a clear slowdown. After a record week of $111.36 million in late June, these products captured only $4.32 million, marking their weakest weekly performance since their launch in May.

Clearly, these massive capital movements outline complex prospects for the coming months. The price rebound observed at the end of the week, which brought Bitcoin back around $63,150 after a 21-month low below $58,000, shows that the spot market reacts strongly to macroeconomic indicators, notably US employment data that rule out the prospect of a Federal Reserve rate hike.

Nevertheless, optimism must be greatly tempered. CryptoQuant experts have warned of an increase in bitcoin and altcoin deposits on exchange platforms, a technical phenomenon that traditionally signals a resurgence of volatility. In the short term, the ability of ETFs to sustain Thursday’s inflows will be the true barometer of institutional confidence.

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.