Bitcoin and Ethereum exchange-traded funds bled a combined $311 million on Thursday, July 24, the largest single-day withdrawal since mid-June. BlackRock's IBIT was the primary driver, accounting for the majority of the selling in a session that caught traders off guard. The outflows come against a backdrop of rising geopolitical tensions that have rattled risk assets across the board.
BlackRock's IBIT leads the selloff
IBIT, the largest spot Bitcoin ETF by assets under management, saw net redemptions of roughly $240 million on its own, according to data compiled by GFdaily. That single fund accounted for nearly 80% of all Bitcoin ETF outflows on the day. Ethereum ETFs added another $71 million in net outflows, though the selling was spread across multiple issuers rather than concentrated in one fund.
The timing isn't great. Bitcoin ETFs had been on a modest winning streak through the first half of July, pulling in about $1.2 billion over the previous three weeks. Thursday erased a sizable chunk of those gains in a single session.
Geopolitical backdrop weighs on sentiment
The selloff occurred as headlines out of Eastern Europe and the Middle East kept traders on edge. Escalating rhetoric between major powers and a fresh round of sanctions announced Wednesday spooked equity and crypto markets alike. Bitcoin slipped about 3% on Thursday, while Ethereum dropped more than 4% before recovering slightly in late trading.
ETF outflows tend to trail price moves rather than lead them, so Thursday's redemptions likely reflect a delayed reaction to the geopolitical news. Still, the concentration of selling in IBIT suggests institutional holders were the ones pulling cash — not retail day traders.
What to watch next
Friday's flow data will be the first real test. If outflows continue, it would mark the first back-to-back days of net redemptions since late June. If the selling fades, Thursday could be written off as a one-off jolt. Either way, the geopolitical headlines aren't going away, and the ETF market is now showing it's not immune to the macro mood.
