Bitcoin ETFs Bleed $465M as Institutions Cut Exposure Amid Macro Fears
Bitcoin spot ETFs saw a sharp reversal in investor sentiment this week, posting net outflows for two consecutive days after a seven-day streak of inflows. According to data from Farside Investors, the funds shed $240 million on Friday, following $225 million in outflows the day before. This erases nearly half of the roughly $1 billion they had taken in during the preceding seven-day period.
The largest contributor to these outflows was BlackRock's IBIT, accounting for just under $415 million of the two-day total. Tim Sun, Senior Researcher at HashKey, attributed this rapid reversal to institutions making 'tactical, phased allocations near the temporary price bottom,' rather than conviction buying. He also tied it to weakening macro conditions, including renewed U.S.-Iran tensions and higher odds of a Fed rate hike later this year.
Sun warned that should rate-hike expectations continue to climb, Bitcoin could face further capital outflows and downside price pressure. Grayscale's head of research, Zach Pandl, has argued that the Fed's decision on July 29 will be crucial in determining whether the bottom is already in for Bitcoin. Meanwhile, Stephen Wundke from Algoz Technologies expects prices to stabilize near $80 if U.S.-Iran tensions subside.