Key Highlights
- American spot Bitcoin exchange-traded funds experienced $527 million in outflows across four trading sessions, completing their eighth consecutive negative week
- A single-day $221.7 million influx on Thursday interrupted a 10-session withdrawal pattern but failed to reverse the weekly trend
- BlackRock’s flagship IBIT product continued its decline for an eleventh consecutive session, hemorrhaging approximately $2.2 billion
- Ethereum-based ETFs similarly concluded the week in negative territory, despite recording gains during the final two trading sessions
- Hyperliquid exchange-traded funds secured $4.3 million in new capital — a positive result but significantly lower than the previous week’s extraordinary $111 million
American spot Bitcoin exchange-traded funds have entered unprecedented territory, logging eight consecutive weeks of net withdrawals—their longest sustained decline since these investment vehicles debuted. The products experienced approximately $527 million in net outflows during the four trading days concluding July 2, based on information from SoSoValue.
Prior to this downturn that commenced in mid-May, these investment products had never experienced more than five consecutive weeks of negative flows.
June emerged as the most challenging month for these financial instruments since regulatory approval. Bitcoin ETFs witnessed more than $4 billion in withdrawals throughout June exclusively. For the calendar year, the products have now recorded a cumulative net loss of $5.53 billion.
Brief Respite on Thursday Ends Extended Outflow Period
The trading week concluded with a modestly encouraging development. On July 2, Bitcoin exchange-traded funds attracted $221.7 million in net capital, terminating a 10-session withdrawal pattern that had eliminated nearly $2.7 billion from these investment vehicles.
Fidelity’s product spearheaded the recovery with $166 million in fresh capital. ARK 21Shares contributed $91.8 million. VanEck secured $4.4 million.
This solitary positive session proved insufficient to salvage the overall week. Substantial withdrawals during earlier trading days had already guaranteed another negative weekly outcome.
BlackRock’s IBIT Continues Downward Trajectory
BlackRock’s investment vehicle remained the sole product experiencing outflows on Thursday. It recorded $40.4 million in withdrawals that session, extending its losing sequence to 11 consecutive trading days.
Throughout this period, the fund has experienced roughly $2.2 billion in redemptions. Current holdings stand at $44.91 billion in net assets compared to $59.99 billion in total inflows since inception.
The typical investor in this fund is currently facing approximately 40% in unrealized losses, according to earlier analysis.
Given its status as the largest Bitcoin exchange-traded fund measured by both assets under management and daily trading activity, persistent withdrawals from this product negatively impact the broader sector even when competing funds experience positive flows.
Bitcoin Cryptocurrency Shows Recovery
Bitcoin declined beneath $58,000 during the early part of the week, reaching a 21-month nadir. The cryptocurrency subsequently rallied to approximately $63,150 by Saturday.
Disappointing U.S. employment statistics contributed to the upward movement. Market participants interpreted the figures as diminishing the probability of a Federal Reserve interest rate hike.
CryptoQuant researchers warned that increasing exchange deposit levels might signal additional price volatility in the near term.
Ethereum and Hyperliquid Investment Products
Spot Ethereum exchange-traded funds likewise finished the week in negative territory, marking their eighth straight weekly withdrawal period. Nevertheless, these products did generate positive daily movements on both July 1 and July 2. BlackRock’s Ethereum vehicle secured $29.7 million on July 2.
Hyperliquid ETFs maintained positive territory for the week with $4.3 million in net capital inflows. This amount represented a dramatic reduction from the preceding week’s exceptional $111 million, suggesting diminishing appetite for alternative cryptocurrency ETF offerings.
Concurrently, major blockchain Bitcoin holders pursued an opposing strategy compared to ETF participants. Large Bitcoin addresses accumulated approximately 270,000 BTC throughout June while exchange-traded funds experienced historic withdrawals.
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