Bitcoin Exchange-Traded Funds (ETFs) experience a loss of $342 million, marking the end of a 15-day positive run.

Bitcoin Exchange-Traded Funds (ETFs) experience a loss of $342 million, marking the end of a 15-day positive run.

In a surprising turn of events, Bitcoin Exchange-Traded Funds (ETFs) experienced outflows totaling $342.2 million on July 1, 2025, marking the end of a 15-day streak of inflows worth over $4 billion. This selloff was primarily due to a sharp Bitcoin price rejection at around $107,000, causing investors to withdraw funds from major Bitcoin ETFs, including Fidelity’s Ethereum Fund (FETH), Grayscale’s GBTC, Ark Invest’s ARKB, and Bitwise BITB.

Despite the selloff, the broader Bitcoin ETF market continues to thrive overall, with over $13.4 billion in inflows year-to-date. On-chain data suggests pressure on Bitcoin prices from Binance whales for about two weeks prior, which may have contributed to the price volatility and subsequent outflows.

Tuesday's selling affected multiple funds, with Bitwise's BITB and ARK 21Shares' ARKB posting outflows of $23 million and $27 million respectively. Interestingly, Ethereum ETFs posted positive inflows on the same day, indicating that institutional investors are being selective and positioning carefully based on overall market signals.

Shawn Young, chief analyst at crypto exchange MEXC, attributed the "short-term outflows" to higher rates for longer, which naturally curb demand for riskier assets like Bitcoin. However, the statement does not provide specific information about Decrypt's Art, Fashion, and Entertainment Hub, which was mentioned but not elaborated upon in the given paragraphs.

Meanwhile, Federal Reserve Chair, Jerome Powell, acknowledged that the Fed would have already begun cutting rates this year absent President Donald Trump's trade policies. Powell has rebuffed such pressure, maintaining that premature easing could reignite inflation. In response to Trump's criticism, Powell has been labelled a "stubborn mule" and a "stupid person" by the former President, who has demanded immediate rate cuts. Despite this, the Federal Reserve has indicated that it will maintain its restrictive monetary policy stance amid lingering tariff concerns.

It is essential to note that one day of out-of-the-ordinary trading in the ETF market does not negate the billions of dollars that have already come in. The daily trading activity does not indicate a long-term trend for Bitcoin ETFs. Bitcoin, which dropped a modest 1.3% to $105,859 in the 24 hours following Powell's remarks, has since recovered to trade at $107,822.

In summary, the outflows were triggered by market reactions to Bitcoin struggling to hold gains above $107,000, prompting profit-taking and reducing inflows into ETFs after a strong multi-week rally. As the market continues to evolve, investors and analysts will closely monitor Bitcoin's price movements and the impact on the ETF market.

1. In spite of the outflows from Bitcoin ETFs, the broader Bitcoin ETF market has amassed over $13.4 billion in inflows year-to-date.
2. On the same day as the Bitcoin ETF selloff, Ethereum ETFs posted positive inflows, indicating a selective approach by institutional investors.
3. The sharp Bitcoin price rejection at around $107,000 was the primary reason for the outflows from major Bitcoin ETFs like Fidelity’s Ethereum Fund (FETH), Grayscale’s GBTC, Ark Invest’s ARKB, and Bitwise BITB.
4. Crypto exchange MEXC's chief analyst, Shawn Young, attributed the "short-term outflows" to higher rates for longer, which naturally curb demand for riskier assets like Bitcoin.
5. Bitcoin, after a drop of 1.3% to $105,859 following Federal Reserve Chair Jerome Powell's remarks, has since recovered to trade at $107,822, suggesting a possible rebound in the market.

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