US-listed spot cryptocurrency exchange-traded funds delivered a sharply divided session on July 23, with Bitcoin products suffering their largest outflow in weeks while Ether funds continued to attract fresh capital.
Spot Bitcoin ETFs recorded $225.1 million in combined net outflows, ending a seven-session inflow streak that had brought hundreds of millions of dollars back into the category. The reversal was driven overwhelmingly by BlackRock’s iShares Bitcoin Trust, or IBIT, which posted $202.5 million of redemptions.
Fidelity’s Wise Origin Bitcoin Fund lost $5.6 million, Bitwise’s BITB shed $7 million and ARK 21Shares’ ARKB recorded $4.3 million of outflows. Franklin Templeton’s EZBC also lost $5.6 million, while WisdomTree’s BTCW posted $5.1 million of redemptions.
Morgan Stanley’s MSBT was the only Bitcoin fund to record a meaningful inflow, attracting $5 million. Grayscale’s GBTC and Bitcoin Mini Trust reported no net movement for the session.
Bitcoin Demand Reverses After Week-Long Recovery
The July 23 result represented a sudden break from the improving flow pattern seen earlier in the week. Bitcoin ETFs had taken in $203.2 million on July 21 and another $69.1 million on July 22, with BlackRock and Fidelity leading the buying.
IBIT’s $202.5 million withdrawal therefore carried particular significance. BlackRock’s fund has historically absorbed the largest share of new institutional demand and had accumulated more than $60.6 billion in net inflows since launch, according to Farside Investors.
A single day of redemptions does not establish a new trend, but the concentration of selling in IBIT suggests one or more large investors reduced exposure as Bitcoin struggled to extend its recovery above the mid-$60,000 range.
ETF flows can influence market liquidity because issuers may need to sell underlying Bitcoin when shares are redeemed. The effect depends on how redemptions are processed and whether authorized participants hedge transactions elsewhere, but sustained withdrawals can remove an important source of spot demand.
Ether ETFs Extend Positive Run
Spot Ether ETFs moved in the opposite direction, attracting $26.3 million in net inflows on July 23. The session marked a fifth consecutive positive day for the category, although inflows slowed from $72.7 million on July 22.
Fidelity’s FETH led Ether allocations with $14.9 million, followed by BlackRock’s ETHA with $8.5 million. BlackRock’s ETHB added $2.9 million, while the remaining funds reported no net movement.
The divergence suggests institutional investors were not abandoning cryptocurrency exposure broadly. Instead, capital appeared to rotate away from Bitcoin while continuing to build positions in Ether through regulated funds.
Ether ETF demand remains more modest in absolute terms than Bitcoin demand, but the consistency of recent inflows is notable after a prolonged period of redemptions. Continued buying could support Ether’s relative performance and strengthen the argument that investors increasingly view it as a separate institutional allocation rather than simply a higher-risk proxy for Bitcoin.
July 23 ultimately showed a fragmented market: Bitcoin’s recovery in ETF demand proved vulnerable, while Ether preserved its positive momentum. The next sessions will determine whether the Bitcoin outflow was a one-day adjustment or the beginning of another institutional retreat.
