Bitcoin exchange-traded funds recorded net outflows of $475 million on Thursday and Friday, snapping a seven-day streak of inflows that had brought in nearly $1 billion. The outflows hit the largest U.S. spot Bitcoin ETFs, with BlackRock's iShares Bitcoin Trust handling the bulk of the trading volume during the sell-off.
Morgan Stanley's Bitcoin Trust bucks the trend
While most funds bled, Morgan Stanley's Bitcoin Trust — launched in April — saw inflows of nearly $9 million over the two days. The fund now holds close to $400 million in assets under management, a sign that some institutional appetite remains even as the broader market pulls back.
What's weighing on Bitcoin
Bitcoin itself was trading around $64,544 at the time of reporting, down over 26% year-to-date. The cryptocurrency has lost nearly half its value since its all-time high of $126,080 in October. European asset manager CoinShares noted that while fresh capital is still trickling into Bitcoin ETFs, the broader macro environment — including the war in the Middle East and rising oil prices — is capping any potential rally. Analysts cite those same headwinds as key risks for a Bitcoin rebound.
The ETF landscape after the reversal
The outflows mark a sharp turn after a strong week. The previous seven-day period (July 14-22) saw $999.3 million in inflows. The SEC approved spot Bitcoin ETFs in 2024 after nearly a decade of denials, and the products have since become a key barometer for institutional demand. The latest data suggests that demand remains sensitive to geopolitical and macroeconomic shocks.
The next test for Bitcoin ETFs will come this week as markets digest the latest developments in the Middle East and oil price moves. Whether the outflows deepen or stabilize could signal how much risk appetite remains among institutional investors.
