On July 31st, US spot bitcoin ETFs recorded a total net outflow of $265.4 million. Leading the outflow was BlackRock's iShares Bitcoin Trust (IBIT) with redemptions of $122.7 million, followed by Fidelity's FBTC fund at $54.8 million (these two funds accounted for roughly two-thirds of the day's total outflow).
IBIT's net assets decreased from $47.67 billion on July 30th to $46.52 billion on July 31st, although the fund still holds approximately 739,066 BTC. These fluctuations once again demonstrate how sensitive these products remain, even for the largest funds in the category.
Ether Funds Defy the Overall Trend
While bitcoin ETFs were losing funds, spot ether ETFs moved in the opposite direction: yesterday, the total net inflow volume rose to approximately $9.03 million. Leading the volume of investments was again BlackRock's iShares Ethereum Trust (ETHA), continuing a trend where ether-based products have outperformed their bitcoin counterparts over the last several trading days.
This divergence was not limited to ether: as recently reported by Bitcoin.com News, the aggregate assets of XRP-linked ETFs also surpassed $1 billion, part of a broader rotation of institutional interest towards altcoin-linked products, even amidst the volatility of bitcoin funds. ETHA has led ether inflows for the last several trading days—a trend many market observers link to renewed institutional interest in ether's role in tokenization and stablecoin settlements, rather than bitcoin's more traditional store-of-value function.
Third Consecutive Quarter of Outflows
The July 31st correction fits into a longer-term trend, as Q2 2026 marked the third consecutive quarter of net outflows from US spot bitcoin ETFs, despite the total assets under management in the category remaining around $105 billion. The worst day in the category's history was in May 2026, when IBIT alone recorded an outflow of approximately $528 million.
Overall uncertainty around Washington's crypto agenda, including prolonged negotiations over ethics provisions within the CLARITY Act, has heightened caution among some institutional investors. Bitcoin's own price dynamics have exacerbated the swings, with the asset trading significantly below its previous highs for much of the quarter.
Given that IBIT still controls the largest share of assets in this category, its daily flows are likely to continue setting the tone for the entire bitcoin ETF market heading into August.
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