U.S. spot Bitcoin exchange-traded funds posted $225.2 million in net outflows on July 23, ending a seven-day streak that had drawn nearly $1 billion into the products. Bitcoin briefly fell below $65,000 during the session.
BlackRock's IBIT recorded the largest exit at $202.5 million. Morgan Stanley's MSBT was the only Bitcoin fund to report inflows, taking in $5 million. Spot Ethereum ETFs moved in the opposite direction, adding $26.3 million on the same day.
Renewed U.S.-Iran hostilities drove broader risk aversion across markets. The Nasdaq fell 0.6 percent to 24,976, while the Russell 2000 dropped 0.3 percent to 2,930. The S&P 500 closed flat at 7,412.
Despite the single-day exit, Bitcoin ETFs still finished the week with net inflows, suggesting the $225.2 million outflow reflected a short-term reaction to geopolitical pressure rather than a reversal in structural demand.
The split between Bitcoin and Ethereum ETF flows points to different investor responses to macro stress. Bitcoin, carrying the higher risk-asset profile in crypto, absorbed the direct impact of the geopolitical shock. Ethereum ETFs held their footing, indicating either a distinct investor base or a different perceived risk profile relative to the macro trigger.
