BlackRock IBIT Leads $225M Bitcoin ETF Outflow Amid Iran Tensions
A seven-day inflow streak for U.S. spot Bitcoin ETFs ended abruptly as macro fears triggered outflows, though concurrent capital moves into Ethereum funds suggest sector rotation rather than broad capitulation.
U.S. spot Bitcoin ETFs recorded $225.2 million in net outflows on July 23, snapping a seven-session streak that had accumulated roughly $1 billion. BlackRock’s IBIT accounted for the vast majority of the selling, shedding $202.5 million, while Fidelity, Bitwise, ARK 21Shares, Franklin Templeton, and WisdomTree posted smaller losses. Morgan Stanley’s MSBT was the sole fund to buck the trend, pulling in $5 million.
The outflows coincided with a broader risk-off move on Wall Street, driven by the prolonged U.S.-Iran military exchange and elevated oil prices. Bitcoin briefly fell below the psychologically significant $65,000 threshold to touch $64,600. This pushed the cryptocurrency beneath a "death cross" pattern—a technical signal where the shorter-term average price falls below the longer-term average, traditionally a bearish indicator. The Crypto Fear & Greed Index dropped three points to 28, marking the most fearful sentiment reading of the month.
Despite the turbulence, the broader crypto complex showed signs of resilience. Spot Ethereum ETFs absorbed $26.3 million, extending their own inflow streak to five consecutive days. This divergence indicates that institutional capital is rotating between digital assets rather than executing a wholesale exit from the space.
Thursday's pullback fits the historical cadence of newly launched commodity funds. Bloomberg Intelligence's Eric Balchunas has forecast a "two steps forward, one step back" trajectory for Bitcoin ETFs, drawing parallels to the 22-year track record of gold ETFs. The recent dip is modest compared to the preceding eight weeks, which drained more than $8.2 billion from the funds—a period CoinShares' James Butterfill characterized as the "largest run of outflows we've ever seen."
For the five sessions through Thursday, Bitcoin funds still closed roughly $274 million higher. However, the asset's near-term trajectory remains heavily tethered to macroeconomic policy. The Federal Reserve's July 28-29 meeting will serve as the next major test for the sector, with the central bank's interest rate decision poised to dictate the broader risk environment.
