Over the four trading days ending July 2, U.S. spot Bitcoin ETFs recorded a combined net outflow of approximately $527 million, marking the eighth consecutive week of negative fund flows. This represents the longest sustained period of weekly outflows since the products' launch, indicating that institutional appetite for Bitcoin allocation has yet to show significant recovery.
July 2 marked a single-day net inflow.
On July 2, U.S. spot Bitcoin ETFs recorded a net inflow of approximately $221.7 million, ending a streak of 10 consecutive days of outflows. This prior streak had collectively withdrawn nearly $2.7 billion.
However, today's inflow alone is not enough to reverse the weekly trend. Previous days' large redemptions have kept the overall four-day figure in net outflow.
IBIT's continuous redemptions are weighing on overall performance.
BlackRock’s IBIT continues to be a major outflow driver. The fund experienced a net outflow of approximately $40.4 million on July 2, extending its consecutive redemption streak to 11 trading days.
According to Farside data, IBIT experienced outflows on each trading day from June 29 to July 2. As IBIT is currently one of the largest and most actively traded spot Bitcoin ETFs, its sustained outflows have a greater impact on the overall industry’s capital flow.
In contrast, some competing products experienced varying degrees of capital inflows during the same period, but the scale was insufficient to fully offset the pressure from IBIT. The market’s focus has now shifted from “whether a single-day rebound occurred” to “whether capital can simultaneously flow back into more major products.”
Ethereum ETFs diverge from other products
The U.S. Ethereum spot ETFs also maintained a weekly net outflow during the same reporting period, despite recording two consecutive days of net inflows on July 1 and July 2. BlackRock’s ETHA attracted approximately $29.7 million in inflows on July 2, driving the sector into positive territory for the day, but the gains were insufficient to offset prior losses.
Meanwhile, ETF products related to Hyperliquid saw a net inflow of approximately $4.3 million between June 29 and July 2, remaining positive for the week. However, this figure was significantly lower than the previous week, indicating that while funds continue to flow into smaller crypto ETFs, investor sentiment has become more cautious.
Bitcoin price rebounds amid divergence in funding rates
While ETFs continued to experience outflows, Bitcoin’s price rebounded from below $58,000 during the week and regained the $61,000 level. The report noted that weaker U.S. employment data and a relatively dovish stance from the Federal Reserve were among the factors supporting the price recovery.
On-chain data, however, presents a different signal. According to the report, during the period of large outflows from ETFs in June, large Bitcoin wallets collectively increased their holdings by approximately 270,000 BTC. This indicates that the market remains divided: ETF investors continue to reduce their positions, while certain on-chain large holders are continuing to accumulate during the pullback.