US spot Bitcoin ETFs experienced a sharp reversal on July 31, with total outflows reaching $265.4 million after a brief surge in inflows just a day earlier. BlackRock’s iShares Bitcoin Trust (IBIT) led the sell-off, losing $122.7 million on the day, nearly half of the total outflows.
Only 24 hours before, these funds collectively gained $233.1 million, with IBIT alone attracting $183.4 million. IBIT’s drawdown isn’t unprecedented it faced a far heavier outflow of roughly $528 million in May 2026. Fidelity’s FBTC followed as the second largest contributor, shedding $54.8 million, meaning these two ETFs accounted for approximately $177.5 million of the day’s total withdrawals.
Assets and Trends
Despite the steep outflows, IBIT’s net assets remained strong at about $46.52 billion by the end of July, down from $47.67 billion the day before. The fund currently holds around 739,066 BTC. The broader picture reveals a persistent pattern of outflows. The second quarter of 2026 marked the third straight quarter of net withdrawals for US spot Bitcoin ETFs, with outflows in Q2 exceeding those in Q1.
July demonstrated a tug-of-war between inflows and outflows. After a 10-day outflow streak ended on July 2 and 3, inflows appeared sporadically, peaking at $233.1 million on July 30. However, that momentum fizzled quickly as the next day saw heavy redemptions again. Across all US spot Bitcoin ETFs, assets under management hovered near $105 billion as of Q2 2026. Since these ETFs launched in January 2024, AUM has plateaued despite steady outflows, largely due to Bitcoin's price gains offsetting withdrawals.
For investors, this cycle matters because sustained ETF outflows mean underlying Bitcoin sales by authorized participants. Slow selling is typically manageable for markets, but if selling accelerates, it can trigger a feedback loop where price drops spark more redemptions and further selling pressure.
This content is for informational purposes only and does not constitute financial advice.
