A four-day streak of net outflows totaling $196 million was recorded from U.S.-listed spot bitcoin ETFs, marking the longest continuous withdrawal period since April. The cumulative redemptions underscore growing risk aversion among institutional investors amid early signs of stagflation in services-sector data. Bitcoin’s price dipped below $114,000 as ETF flows turned negative.
Data from SoSoValue indicated that Fidelity’s FBTC and BlackRock’s IBIT accounted for the bulk of redemptions. Eleven tracked spot bitcoin ETFs registered withdrawals across all issuers on Tuesday, following outflows of $114.83 million on Thursday, $812.25 million on Friday and $333.19 million on Monday. The sustained outflow streak highlights a potential rotation away from bitcoin toward perceived safer assets.
The U.S. ISM Non-Manufacturing PMI report for July revealed unexpected strength in services prices, employment weakness and trade disruptions—factors that together exacerbated stagflation concerns. The services PMI rose to above‐forecast levels, signaling persistent inflationary pressures that weighed on risk assets, including technology stocks and cryptocurrencies.
In contrast, ether ETFs saw inflows of $73.22 million on Tuesday, snapping a two‐day decline. Analysts attribute the surge to recent SEC guidance clarifying that certain liquid staking activities and token receipts do not constitute securities offerings, clearing a regulatory hurdle for spot ether ETF approval and boosting investor demand for ether‐based products.
Market reactions diverged, with the Nasdaq composite falling 0.7% on the same day while bitcoin slid over 1% to around $112,650 before rebounding near $114,000. Some market participants interpreted the rotation into ether ETFs as an early sign of shifting portfolio preferences within the digital‐asset space.
Looking ahead, ETF flow metrics and upcoming U.S. CPI and PPI releases will be closely monitored for confirmation of evolving inflation dynamics. Should economic data continue to underline price pressures, bitcoin may experience further outflow pressure, whereas ethereum products could benefit from sustained regulatory support.
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