Bitcoin spot ETFs logged their first net outflow in more than a week on Thursday, reversing a seven-session inflow streak as geopolitical jitters rattled markets. Key points - U.S.-listed spot Bitcoin ETFs saw $225.2 million in net redemptions on Thursday, ending a run that had pulled in nearly $1 billion over the prior seven sessions. It was the category’s first negative day since July 13. - Despite Thursday’s withdrawals, the funds were still roughly $274 million higher over the five trading sessions through Thursday. - BlackRock’s IBIT accounted for the bulk of the selling, offloading $202.5 million. Smaller outflows hit Fidelity’s FBTC, Bitwise’s BITB, ARK 21Shares’ ARKB, Franklin Templeton’s EZBC, and WisdomTree’s BTCW. Morgan Stanley’s MSBT was the only fund to attract new money, adding about $5 million. Why it happened - The sell-off coincided with broader risk-off sentiment: U.S. stocks fell as an ongoing U.S.–Iran military exchange, now into its fifth month, kept oil prices elevated and risk appetite muted. That macro pressure spilled into crypto markets. - Bitcoin briefly slipped beneath the $65,000 mark, touching about $64,600. The move once again put BTC under what chartists call a “death cross” — when a short-term moving average falls below a long-term moving average, a classic technical bearish signal. - Market sentiment cooled: the Crypto Fear & Greed Index dropped three points to 28 on Thursday, remaining firmly in “fear” territory. Wider context and rotation - The recent bullish run followed a brutal earlier stretch: eight weeks that saw more than $8.2 billion exit the same spot-ETF complex. CoinShares’ James Butterfill called that period “the largest run of outflows we’ve ever seen” once inflows resumed in early July. - Bloomberg Intelligence’s Eric Balchunas has likened the funds’ cycle to gold ETFs’ long history — a “two steps forward, one step back” pattern as investors test the new product class. - Not all crypto products followed Bitcoin down. U.S. spot Ethereum funds added $26.3 million on Thursday, extending their inflows streak to five days — suggesting a rotation within crypto rather than wholesale capitulation. What to watch next - The Federal Reserve’s July 28–29 meeting is the next major catalyst. Policy decisions on rates could reshape the broader macro backdrop and influence where risk assets, including Bitcoin and its ETFs, head in the near term. Bottom line: one volatile day interrupted a fresh inflow streak for Bitcoin ETFs, but the episode underscores how macro headlines and technical signals can quickly sway investor flows — even as some buyers rotate into Ethereum products. Read more AI-generated news on: undefined/news