The US Spot Bitcoin ETF recorded net outflows of $225 million on July 23, ending a seven-session streak of inflows as net redemptions from BlackRock’s iShares Bitcoin Trust accounted for most of the reversal.
IBIT recorded net outflows of $202 million, accounting for 89.96% of the total net outflows in the US Spot Bitcoin ETF sector.
Five other funds recorded combined outflows of $27.6 million, while Grayscale’s GBTC collected $5 million. Therefore, including non-IBIT funds, daily outflows amounted to a net $22.6 million.
This reversal follows seven consecutive positive trades from July 14 to July 22, during which the ETF collected a total of $999 million. The withdrawal on July 23 erased approximately 22.5% of these additional amounts, leaving net inflows of $774 million across the eight-session period, according to Farside Investors.
Bitcoin falls with reversal
Bitcoin also fell during yesterday’s July 23rd session. BlackRock reported that IBIT’s net asset value fell 1.63% for the day, with the CME CF Bitcoin Reference Rate benchmark ending at $64,768.
This decline is directionally consistent with a softening in ETF demand, but the timing on the same day leaves the causal relationship unresolved. Fund flows are calculated after a trading session and can reflect investor positioning established at different points of the day.
This session is particularly important for BlackRock’s funds as it is concentrated within IBIT. Net outflows of $202.5 million were nearly nine times the net outflows from all other products combined.
However, the broader eight-session total remains solidly positive. Based on the available inflow evidence, July 23rd looks more like a partial reversal of the previous trend than clear evidence that the broader inflow trend is over.
IBIT’s outflow was due to investors redeeming their fund shares, and BlackRock acted as a sponsor throughout the process. Retail investors will trade IBIT shares in the secondary market, while authorized participants will create or redeem large collective units known as baskets, according to BlackRock’s product documentation.
This flow tracks investors redeeming IBIT shares through the fund’s basket system. The sale of Bitcoin will take place after its redemption process, but BlackRock will continue to sponsor the fund and keep its corporate capital outside of the transaction.
Further sessions will test ETF demand buffers
The durability question hinges on whether the July 23 reversal is extended into the subsequent final session. A repeat of the net outflows would unwind even more of the $999.3 million accumulated during the earnings streak, providing strong evidence that ETF demand has weakened.
If inflows recover, the interpretation that July 23rd was a one-session reset will become stronger. Based on final data to date, the recent eight-session window still shows net demand of $774.2 million despite the IBIT-led reversal.
(Tag translation) Bitcoin
