US spot Bitcoin ETFs snapped a 10-day, $2.7 billion outflow streak with $487 million in net inflows over two sessions in early July, led by BlackRock and Fidelity. Separately, a BlackRock report this week called bitcoin's more-than-50% drop from its $126,200 peak a "positioning correction," even as the market awaits the Federal Reserve's rate-decision minutes.
US spot Bitcoin ETF products pulled in $487 million in net inflows over two consecutive trading sessions in early July, ending a punishing 10-day outflow streak that had drained roughly $2.7 billion from the funds. Bitcoin recaptured $63,835 during that stretch, a 3.6% weekly gain.
The turnaround started on July 2, when a single-day inflow of $221.7 million broke the bleeding. BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) did most of the heavy lifting, the same script the two funds have followed since their early-2024 launch.
Outflows still outweigh the rebound
However, the reversal is modest against the bigger picture: bitcoin ETFs posted roughly $6.35 billion in net outflows over the trailing 30 days heading into July. Bitcoin trading between $60,000 and $65,000 gave large holders room to trim positions without crashing the market, and the timing of the inflows suggests institutions treated sub-$60,000 prices as a buying opportunity rather than a reason to panic.
BlackRock calls the pullback a "positioning correction"
In a separate report published this week, BlackRock said bitcoin's decline of more than 50% from its $126,200 all-time high followed cascading liquidations as leverage was purged from a historically overleveraged market. According to Cointelegraph, BlackRock described the drop as "a positioning correction rather than a change in its investment case". The asset manager's own IBIT still saw net outflows of $78.9 million in the week through Aug. 14, with total ETF outflows reaching $267.2 million across that week.
BlackRock's report expects bitcoin's correlation with broader risk assets to normalize lower as speculative excess fades, reinforcing its longer-term case as a low-correlation diversifier.
Fed minutes loom as bitcoin holds its range
As of today, bitcoin trades near $64,431.93, within its weeks-long $60,000-to-$67,000 range, ahead of the release of minutes from last month's Federal Reserve rate-setting meeting. Traders on Polymarket put the probability of no rate change in September at about 72%, while the CME's FedWatch tool puts it at about 67%.
Sources: Crypto Briefing, CoinDesk, Cointelegraph
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