Bitcoin ETF Flows Reverse Sharply

U.S.-listed spot Bitcoin exchange-traded funds experienced $225.18 million in net outflows on July 23, ending a seven-day streak of inflows that had totaled nearly $1 billion. The reversal marked the first negative session since mid-July and reflected broader caution among institutional investors.

BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the bulk of the withdrawals with $202.48 million leaving the fund. Other notable outflows included Bitwise Bitcoin ETF (BITB) at $7.03 million, Fidelity’s FBTC at $5.64 million, and Franklin Templeton’s EZBC at $5.61 million. Morgan Stanley’s MSBT was the sole positive performer among major issuers, drawing in $5.01 million.

Bitcoin Price Moves Lower Amid Risk-Off Sentiment

Bitcoin’s price slipped below $65,000 during trading, reaching intraday lows near $64,600 before recovering modestly. The decline coincided with weakness in U.S. equities and heightened geopolitical concerns stemming from ongoing U.S.-Iran tensions. The broader cryptocurrency market capitalization also fell, with sentiment indicators remaining in fear territory.

The pullback in Bitcoin followed a brief push toward $66,000-$67,000 earlier in the week, supported by the prior period of positive ETF flows. Market observers noted that institutional demand appeared sensitive to macroeconomic developments.

Ether ETFs Maintain Positive Momentum

In contrast to Bitcoin products, spot Ether ETFs recorded $26.32 million in net inflows, extending their positive run to five consecutive sessions. Fidelity’s FETH led with $14.93 million, followed by BlackRock’s ETHA at $8.49 million. Cumulative inflows for Ether funds now exceed $11 billion.

This divergence highlights selective institutional positioning, with capital rotating within the crypto asset class rather than exiting entirely.

Rising Treasury Yields Influence Capital Allocation

The ETF outflows occurred as U.S. Treasury yields climbed, with the 10-year note reaching an 18-month high near 4.71%. Investors appeared to favor safer government bonds amid elevated oil prices and uncertainty from geopolitical developments. The 30-year yield also rose notably, adding to concerns over borrowing costs and fiscal dynamics.

These traditional market signals contributed to a broader risk-off environment affecting crypto allocations.

Regulatory and Market Context

Recent discussions around the CLARITY Act had previously supported sentiment, but procedural delays and external pressures appear to have tempered enthusiasm. Bitcoin ETFs have seen uneven performance throughout the month, with earlier outflows giving way to the recent positive streak before Thursday’s reversal.

Grayscale’s GBTC continued to experience outflows, consistent with its higher fee structure compared to newer, lower-cost competitors. Overall trading volumes across Bitcoin ETFs remained significant, underscoring sustained institutional interest despite the daily net redemption.