Bitcoin ETFs in the U.S. saw net inflows for the third week running, even though investors withdrew a hefty $465 million over just two days. According to CoinDesk data, the week ending July 24 closed with $33.79 million in net inflows. This figure appeared strong until the large outflows on Thursday and Friday wiped out most of the gains.
Week’s inflow numbers under pressure
The inflows this week marked a slowdown compared to the previous two weeks, which posted $75.67 million and $197 million respectively. Bitcoin had climbed to a July peak above $66,500 on Tuesday, setting the stage for what could have been a standout week. Yet, the sudden withdrawals of $225.2 million on July 23 and $240.1 million on July 24 disrupted this momentum, turning what looked like a steady recovery into a fragile situation.
One product bore the brunt: BlackRock’s IBIT fund. It accounted for nearly $415 million of the outflows, highlighting a concentrated sell-off rather than a broad pullback from Bitcoin ETFs. This indicates that a specific macroeconomic event or sentiment shift directed the sell pressure, instead of a general retreat from the asset class.
Market reaction and implications
The sharp pullback in inflows reveals that the ETF market’s recent optimism is being tested by broader financial concerns. Investors seem cautious amid worries about Federal Reserve rate hikes and volatility in tech stocks, factors that likely influenced the abrupt fund withdrawals late in the week.
This pattern contrasts with the earlier weeks’ stronger demand. The three-week inflow streak is the first since early May, yet the declining amounts suggest that Bitcoin ETFs are not yet out of the woods. Future investor confidence will depend heavily on how these ETFs perform amid ongoing macroeconomic uncertainties.
