Key Highlights
- American spot Bitcoin ETFs experienced outflows of $527 million across four trading sessions, continuing an unprecedented eighth consecutive negative week
- A single-day inflow of $221.7 million on Thursday interrupted a 10-day withdrawal pattern but failed to reverse the weekly trend
- BlackRock’s IBIT fund continues its decline for an 11th consecutive trading day, losing approximately $2.2 billion
- Ethereum ETFs similarly recorded negative weekly performance, though showing positive movement during the final two trading days
- Hyperliquid ETFs registered $4.3 million in inflows — maintaining positivity but significantly lower than the previous week’s $111 million milestone
American spot Bitcoin exchange-traded funds have established an unprecedented benchmark, documenting eight consecutive weeks of net capital withdrawals — the longest such period since these investment vehicles debuted. Throughout the four trading sessions concluding July 2, these funds experienced approximately $527 million in outflows, based on information from SoSoValue.
Prior to this current downturn beginning in mid-May, these financial products had never experienced more than five consecutive negative weeks.
June emerged as the most challenging month for these investment products since receiving regulatory authorization. During June exclusively, Bitcoin ETFs witnessed over $4 billion in departures. Calculating from the beginning of the year through present, the funds have accumulated a net deficit of $5.53 billion.
Brief Respite on Thursday Ends 10-Day Withdrawal Pattern
The trading week concluded with a momentary improvement. On July 2, Bitcoin ETFs registered $221.7 million in net capital inflows, terminating a 10-session withdrawal pattern that had eliminated nearly $2.7 billion from these investment vehicles.
Fidelity’s Bitcoin product spearheaded the turnaround, attracting $166 million in fresh capital. ARK 21Shares contributed an additional $91.8 million. VanEck secured $4.4 million in inflows.
Despite this positive development, a single favorable day proved insufficient to salvage the overall weekly performance. Substantial outflows during earlier sessions had already guaranteed another negative weekly outcome.
BlackRock’s Flagship Fund Continues Downward Trajectory
BlackRock’s investment product remained the sole fund experiencing withdrawals on Thursday. The fund recorded a $40.4 million outflow that session, extending its consecutive losing period to 11 trading days.
Throughout this duration, the fund has experienced approximately $2.2 billion in withdrawals. Currently, it maintains $44.91 billion in net assets compared to $59.99 billion in total inflows accumulated since its inception.
The typical investor holding shares in this fund faces losses approaching 40%, according to earlier analysis.
Given its position as the largest Bitcoin ETF measured by assets under management and daily trading activity, persistent outflows from this particular fund create downward pressure across the entire sector, even when smaller competitors experience positive flows.
Bitcoin Valuation Shows Recovery
Bitcoin’s price dropped beneath $58,000 during the early portion of the week, reaching a 21-month minimum. The cryptocurrency subsequently rallied to approximately $63,150 by Saturday.
Disappointing U.S. employment statistics contributed to the price recovery. Market participants interpreted the economic data as diminishing the probability of a Federal Reserve interest rate hike.
CryptoQuant research professionals warned that increasing exchange deposits might signal additional price volatility in upcoming sessions.
Ethereum and Hyperliquid Investment Products
Spot Ethereum exchange-traded funds similarly concluded the week with negative results, marking their eighth consecutive weekly outflow. Nevertheless, these products demonstrated positive daily performance on both July 1 and July 2. BlackRock’s Ethereum investment vehicle attracted $29.7 million on July 2.
Hyperliquid ETFs maintained weekly positivity with $4.3 million in net inflows. This figure represented a substantial decline from the preceding week’s exceptional $111 million, suggesting diminishing appetite for alternative cryptocurrency ETF offerings.
Concurrently, major blockchain Bitcoin holders pursued strategies contrary to ETF participants. Substantial Bitcoin wallets accumulated approximately 270,000 BTC throughout June while exchange-traded funds experienced historic withdrawals.
