BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest outflow in nine weeks, with $292.5 million exiting the fund on Monday. The outflow comes as Bitcoin price briefly slumped over the weekend before recovering, signaling a slowdown in spot Bitcoin ETF momentum.
Bitcoin Price Rebounds After Weekend Dip
Over the weekend, Bitcoin (BTC) retreated 8.5% from its July 14 all-time high, bottoming out at $112,300 on Sunday. By late Monday, Bitcoin rebounded to around $115,000, slightly easing market jitters. Despite this recovery, the ETF market showed signs of cooling after weeks of strong inflows.
Monday’s outflow from BlackRock IBIT ended its 37-day inflow streak, following a minor outflow on Friday. In comparison, July brought the fund a monumental $5.2 billion net inflow, which represented roughly 9% of IBIT’s total inflows since its January 2024 launch.
Spot Bitcoin ETFs See Consecutive Outflows
The sell-off marks the third consecutive trading day of net outflows for US-listed spot Bitcoin ETFs. Alongside BlackRock:
- Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw $40 million in outflows
- Grayscale Bitcoin Trust (GBTC) shed $10 million
- Bitwise Bitcoin ETF (BITB) was the only major fund with positive flows, attracting $18.7 million
Monday’s $292 million outflow, however, was far smaller than Friday’s $812 million exit, suggesting selling pressure is moderating as Bitcoin holds support near $112,000.
Digital Assets Continue to Attract Institutional Interest
Despite the short-term cooling in ETF flows, institutional interest in digital assets remains strong. Bloomberg ETF analyst Eric Balchunas and JPMorgan strategist Nikolaos Panigirtzoglou highlighted that digital assets and hedge funds are gaining market share this year, while private equity and private credit face weaker fundraising.
According to Bloomberg, capital inflows into digital asset products reached $60 billion by July 22, following a record $85 billion in 2024, making it the fastest-growing segment in alternative investments.
Bitcoin ETFs Reduce Market Volatility
The rise of spot Bitcoin ETFs has also had a stabilizing effect on Bitcoin volatility. Balchunas noted that BlackRock IBIT’s 90-day rolling volatility has dropped below 40 for the first time, down from over 60 at the start of 2024.
Lower volatility, fewer sharp drawdowns, and growing institutional adoption may give Bitcoin a stronger case as a long-term asset — and potentially, a viable digital currency in the eyes of traditional finance.
