The capital that flowed out of Bitcoin ETFs throughout June had raised questions about whether institutional appetite was cooling. Consecutive daily outflows toward the end of the month kept the debate alive over whether investors were taking profits or moving into a more cautious wait-and-see mode. Today’s picture added a new data point to that discussion.
U.S.-based spot Bitcoin ETFs, which had recorded uninterrupted outflows for 10 days, returned to net inflows on Thursday.
According to SoSoValue data, the funds saw a total net inflow of $221.7 million on July 2. Fidelity’s FBTC fund accounted for $166 million of that amount on its own. Ark Invest and 21Shares’ joint fund, ARKB, attracted $91.8 million, while VanEck’s HODL fund brought in $4.4 million.
This marked the first time since June 16 that the funds closed the day in positive territory. During the period in between, a total of $2.7 billion had flowed out of the funds. June also became the worst month for Bitcoin ETFs since their launch in 2024, with $4.5 billion in outflows.
BlackRock Bucked the Trend
BlackRock’s IBIT was the only fund to record an outflow on Thursday, losing $40.4 million. This marked its 11th consecutive day of outflows. During this period, around $2.2 billion has left IBIT, while the fund has also remained in negative territory for eight straight weeks on a weekly basis.
According to LVRG Research Director Nick Ruck, this does not mean that IBIT is losing its reputation. The main reason, he says, is that capital is shifting toward smaller or lower-fee funds. Ruck sees this as a sign that capital has become much more selective across providers.
There Is Also a Recovery on the Price Side
Bitcoin started July with upward momentum. The price, which was around $58,000 on July 1, rose to $61,730, marking a 2.8% increase over the past 24 hours.
Glassnode analyst Chris Beamish wrote that long-term Bitcoin holders had started buying again after an extended period of selling. According to Beamish, this accumulation is not limited to a single group. It is spread across different wallet segments, including mid-sized holders with 100 to 1,000 BTC.
A stronger buy-side presence on Coinbase’s order book and dealer positioning around the current price now providing more support to the market are two other indicators Beamish pointed to.
Ruck lastly says the market has moved from defensive positioning toward more selective optimism, supported by recovering risk appetite and expectations for future adoption. However, he adds that inflows need to become sustained before a real directional shift can be confirmed.
