US spot Bitcoin ETFs recorded $225 million in net outflows on July 23, ending a seven-session inflow streak as net redemptions from BlackRock’s iShares Bitcoin Trust dominated the reversal.
IBIT posted a $202 million net outflow, accounting for 89.96% of the US spot Bitcoin ETF sector’s aggregate net outflow.
Five other funds recorded combined outflows of $27.6 million, while Grayscale’s GBTC attracted $5 million. Together, the funds outside IBIT therefore contributed a net $22.6 million to the daily outflow.
The reversal followed seven consecutive positive sessions between July 14 and July 22, during which the ETFs attracted a combined $999 million. The July 23 withdrawal erased approximately 22.5% of those additions, leaving the full eight-session period with a net inflow of $774 million, according to Farside Investors
Bitcoin weakened alongside the reversal
Bitcoin also moved lower during the July 23 session yesterday. BlackRock reported that IBIT’s net asset value declined 1.63% for the day, while its CME CF Bitcoin Reference Rate benchmark ended at $64,768.
The decline was directionally consistent with softer ETF demand, although the same-day timing leaves causation unresolved. Fund flows are calculated after the trading session and can reflect investor positioning established at different points during the day.
The concentration within IBIT makes the session especially significant for BlackRock’s fund. The $202.5 million net outflow was nearly nine times the combined net outflow from every other product.
However, the broader eight-session total remains firmly positive. On the available flow evidence, July 23 looks more like a partial reversal of the preceding streak than clear evidence that the broader inflow trend has ended.
IBIT’s outflow came from investors redeeming fund shares, with BlackRock acting as sponsor throughout the process. According to BlackRock’s product documentation, ordinary investors trade IBIT shares on the secondary market, while authorized participants create or redeem large aggregated units known as baskets.
The flow tracks investors redeeming IBIT shares through the fund’s basket system. Any Bitcoin sale follows from that redemption process, while BlackRock remains the fund sponsor and keeps its corporate capital outside the trade.
Further sessions will test the ETF demand buffer
The durability question now depends on whether the July 23 reversal extends into subsequent finalized sessions. Repeated net outflows would unwind more of the $999.3 million accumulated during the streak and provide stronger evidence that ETF demand has weakened.
A return to inflows would strengthen the interpretation that July 23 was a one-session reset. Based on finalized data through that date, the recent eight-session window still shows $774.2 million of net demand despite the IBIT-led reversal.
