Bitcoin ETFs record their longest streak of outflows in history

The crypto market has just crossed a symbolic threshold, but this renewed confidence masks a much more fragile reality. While crypto ETFs were supposed to sustainably install institutional capital on the market, their latest financial reports reveal flaws that call into question the solidity of this dynamic. This observation comes at a pivotal moment, where the decisions of the Federal Reserve and American macroeconomic uncertainties continue to guide global flows. A combination that could weigh on the trajectory of these assets in the coming months.

Bitcoin ETF: The eight-week black streak

Exchange-traded funds backed by spot bitcoin in the United States have just suffered an unprecedented setback on regulated markets. According to data compiled by SoSoValue, capital movements over the past week are decline Thus :

• A net loss of around $527 million over the four days of trading in a week shortened by the American national holiday;
• An eighth consecutive week of negative net flows, which now stands out as “the longest series of weekly outflows in the history of these funds”;
• Cumulative net losses for these products which now amount to $5.53 billion since the start of the year;
• A radical change in dynamics knowing that before the outbreak of this bearish phase in mid-May, these financial vehicles had never achieved more than five consecutive weeks of net withdrawals.

However, this disastrous weekly report conceals a notable technical surge that occurred at the very end of the period. During the session on Thursday, July 2, Bitcoin ETFs indeed attracted $221.72 million in net inflows, signing their “largest daily collection since May 5”. This rebound made it possible to put an end to an agony of ten consecutive sessions of capital outflows, a sequence which had literally drained approximately 2.71 billion dollars.

The Fidelity Wise Origin Bitcoin Fund (FBTC) largely dominated this respite session with $165.96 million in inflows, followed by the product of ARK and 21Shares (ARKB) which captured $91.84 million. Observers have also noted an overall deceleration in the pace of outflows, since the previous week had recorded a much more massive siphoning of 1.79 billion dollars.

BlackRock under pressure: record unrealized capital losses

While the majority of issuers were catching their breath on Thursday, asset management giant BlackRock was a worrying exception on the markets. Its flagship fund, the iShares Bitcoin Trust (IBIT), was the only ETF to record negative flows this past session, suffering a loss of $40.43 million. This poor performance marks the eleventh consecutive day of withdrawals for IBIT. Such outflows cut the fund by nearly $2.2 billion over this period alone.

Now, the colossus of Wall Street displays $44.91 billion in net assets, backed by $59.99 billion in cumulative inflows since its launch. This constant decline is explained in particular by a critical financial reality for unitholders: “the average IBIT investor currently has an unrealized capital loss of around 40%”.

Ethereum and Hyperliquid change pace

This capitulation of institutional investors is not limited to bitcoin and also spreads to other assets in the ecosystem. Ethereum spot ETFs also recorded a leak of $13.67 million over the week, completing their eighth consecutive week in the red and equaling their historic exit record established between the end of February and mid-April 2025.

In addition, Ether funds, which have posted a net loss of $1.44 billion since January, however, limited the damage thanks to two days of consecutive entries on Wednesday and Thursday. At the same time, the emerging sector of Hyperliquid ETFs is experiencing a significant slowdown. After a record week at $111.36 million at the end of June, these products only captured $4.32 million, marking their weakest weekly performance since their launch in May.

Obviously, these massive capital movements present complex prospects for the months to come. The rebound in prices observed at the end of the week, which brought Bitcoin back to around $63,150 after a 21-month low below $58,000, shows that the spot market reacts strongly to macroeconomic indicators, in particular to American employment data which rules out the prospect of a rate hike by the Federal Reserve.

However, optimism must be greatly qualified. CryptoQuant experts have warned of an increase in bitcoin and altcoin deposits on exchanges, a technical phenomenon that traditionally heralds a surge in volatility. In the short term, the ability of ETFs to sustain Thursday inflows will be the true barometer of institutional confidence.