Spot Bitcoin ETFs shed $526M as crypto fails to hold $65K
US spot Bitcoin ETFs have suffered $526 million in cumulative outflows over four days as the token's failure to hold $65,000 triggers renewed institutional selling and highlights a broader drop in market liquidity.
Investors pulled roughly $49.8 million from US-listed spot Bitcoin exchange-traded funds in the latest session, capping a four-day withdrawal streak that totaled $526 million. The capital flight began immediately after Bitcoin failed to maintain a footing above $65,000, with the token briefly slipping to $63,100 on Thursday. That marked the asset's lowest price point since July 17.
The bulk of the recent exits occurred earlier in the week, driven by renewed selling pressure. SoSoValue data indicates that the funds saw outflows of about $240 million on July 24, following $225 million in withdrawals the previous day. This abrupt shift in sentiment reversed a prior seven-day stretch of inflows that had injected nearly $1 billion into the funds, underscoring the sensitivity of institutional capital to key technical price levels.
While the four-day streak signals short-term caution, the broader structural adoption of the spot vehicles remains intact. Cumulative net inflows since the funds launched stand at a robust $51.3 billion. Furthermore, total net assets reached $77.2 billion as of July 28. These figures demonstrate that the recent withdrawals represent a minor retracement rather than a fundamental collapse in institutional confidence.
The underlying market is currently grappling with a significant liquidity drought that complicates the demand outlook. Spot trading volumes on major platforms have deteriorated severely compared to past peaks. CryptoQuant community analyst Darkfost highlighted that Binance processed roughly $35 billion in spot volume during July, a stark contraction from the $246 billion recorded in November 2024.
Such thin liquidity makes the market highly reactive to large ETF flows, amplifying downward price swings when outflows occur. "Bitcoin’s return to a bullish trend would require renewed demand and improving market conditions," Darkfost said. At the time of publication, Bitcoin had recovered slightly to trade at $64,371, up 2.7% over the past week, though a sustained breakout above $65,000 remains contingent on a broader revival in market participation.
