Bitcoin ETFs Hit Historic Low: $5.5 Billion Vanishes in Two-Month Exodus

TLDR

Table of Contents

Spot Bitcoin ETFs in America experienced $527 million in redemptions across four trading sessions, establishing an unprecedented eighth consecutive negative week
A $221.7 million injection on Thursday interrupted a 10-day withdrawal pattern but failed to reverse the weekly trend
BlackRock’s IBIT fund continues its devastating streak of 11 consecutive losing sessions, hemorrhaging approximately $2.2 billion
Ethereum-based ETFs similarly concluded the week in negative territory, despite registering positive flows during the final two trading days
Hyperliquid exchange-traded products captured $4.3 million in capital, representing growth but dramatically lower than the previous week’s unprecedented $111 million surge

American spot Bitcoin exchange-traded funds have established an unwanted milestone: eight consecutive weeks of net capital withdrawals, representing the longest sustained decline since these investment vehicles debuted. The products experienced approximately $527 million in redemptions during the four-session period concluding July 2, based on analysis from SoSoValue.

Spot Bitcoin ETFs See $527M Net Outflows Last Week, Extending Outflow Streak to 8 Weeks
From June 29 to July 2 (ET), spot Bitcoin ETFs saw $527 million in net outflows, marking the eighth consecutive week of outflows. Spot Ethereum ETFs recorded $13.67 million in net outflows,… pic.twitter.com/mqujUflCEl
— Wu Blockchain (@WuBlockchain) July 6, 2026

Prior to this downturn initiating in mid-May, these financial instruments had never experienced more than five consecutive weeks of negative flows.

June emerged as the most devastating month for these products following their regulatory approval. Bitcoin ETFs witnessed capital flight exceeding $4 billion throughout June exclusively. Calculating from January through present, the funds have registered cumulative net losses of $5.53 billion.

Brief Thursday Rally Interrupts 10-Session Decline

The trading week concluded with a glimmer of optimism. On July 2, Bitcoin exchange-traded funds attracted $221.7 million in net capital, terminating a 10-consecutive-session withdrawal pattern that had eliminated nearly $2.7 billion from these investment vehicles.

Fidelity’s product spearheaded the reversal with $166 million in fresh capital. ARK 21Shares contributed an additional $91.8 million. VanEck secured $4.4 million.

Despite this single-day recovery, the weekly performance remained negative. Substantial redemptions during earlier sessions had already guaranteed another losing week.

BlackRock’s IBIT Faces Relentless Outflows

BlackRock’s flagship product stood as the sole fund still experiencing redemptions on Thursday. The fund recorded $40.4 million in withdrawals that session, extending its losing sequence to 11 consecutive trading days.

Throughout this prolonged period, the product has surrendered roughly $2.2 billion. Current net assets stand at $44.91 billion compared to $59.99 billion in aggregate inflows since inception.

Typical investors holding this fund are experiencing losses approaching 40%, according to earlier analysis.

Given its position as the dominant Bitcoin ETF measured by both assets under management and daily trading activity, persistent withdrawals from this product create downward pressure across the entire sector even when competing funds experience positive flows.

Digital Currency Prices Stage Recovery

Bitcoin dropped beneath the $58,000 threshold earlier during the week, establishing a 21-month nadir. The cryptocurrency rallied to approximately $63,150 by Saturday.

Disappointing U.S. employment statistics contributed to the price recovery. Market participants interpreted the economic data as diminishing the probability of Federal Reserve interest rate escalation.

CryptoQuant researchers warned that increasing cryptocurrency deposits on exchanges might signal additional price turbulence ahead.

Ethereum and Alternative Crypto ETF Performance

Spot Ethereum exchange-traded funds similarly finished the week with negative results, marking their eighth straight weekly decline. Nevertheless, these products did register positive daily inflows on both July 1 and July 2. BlackRock’s Ethereum product attracted $29.7 million on July 2.

Hyperliquid ETFs maintained positive weekly performance with $4.3 million in net accumulation. This figure represented a dramatic decrease from the preceding week’s record-setting $111 million, suggesting diminishing enthusiasm for alternative cryptocurrency ETF offerings.

Meanwhile, substantial blockchain-based Bitcoin holders demonstrated contrarian behavior relative to ETF participants. Large Bitcoin addresses accumulated roughly 270,000 BTC throughout June while institutional ETF products experienced unprecedented redemptions.