Bitcoin ETF ends four-day capital outflows driven by BlackRock

The Bitcoin ETF returned to net inflows after four consecutive days of outflows

According to data, the U.S. spot Bitcoin ETF reversed its trend on July 29, 2026, recording a net inflow of US$32.1 million, ending four consecutive days of net outflows. The shift marks a major change in institutional demand sentiment after a week of poor capital flows. The reversal comes as ETF investors weigh macroeconomic signals, trading activity and recent volatility. Net inflows confirmed by multiple data providers highlight the renewed interest in spot Bitcoin ETF products despite recent outflows and market uncertainty.

BlackRock IBIT led the rally, as Fidelity and Ark continued to sell off

The July 29 reversal was unevenly distributed among different issuers. Based on reports, BlackRock's iShares Bitcoin Trust (IBIT) leads all U.S. spot ETFs with a net inflow of $89.8 million. In comparison, Fidelity's Wise Origin Bitcoin Fund (FBTC) recorded a net outflow of $43.08 million, and Ark Invest's ARK21 Shares Bitcoin ETF (ARKB) recorded a net outflow of $14.62 million. This divergence suggests that while some institutional investors are increasing their exposure, others are reducing their positions or facing investor redemptions. The vastly different capital flows between IBIT and FBTC highlight the competitive landscape among major ETF issuers and may also reflect different investor bases or strategies.

Net inflow/outflow of ETFs (US dollars): BlackRock IBIT +89.8 million; Fidelity FBTC-43.08 million;Ark ARKB-14.62 million.

Outflow tides for four consecutive days

Before the inflow, the fund experienced a significant decline. On July 28, these funds showed an outflow of $49.75 million, the fourth consecutive day of redemption. A similar report pointed out that BlackRock's IBIT led the way with an outflow of US$54.8 million that day, while Gray's Bitcoin Mini Trust recorded a moderate inflow of US$5.1 million. These continuous outflows have depressed market sentiment and shown caution among ETF investors. The spate of outflows highlights how quickly sentiment in the field changes, and a one-day reversal cannot erase previous losses.

The Federal Reserve's interest rate decision came into effect on the same day

As a macro background for the flow of ETF funds, the Federal Open Market Committee voted 9 - 3 on July 29 to keep the federal funds rate unchanged at 3.5%-3.75%. It was the fifth consecutive meeting that rates had not been adjusted, and three regional Fed presidents-Beth Hamack of Cleveland, Neil Kashkari of Minneapolis and Lori Logan of Dallas-voted against it, preferring to raise rates. The timing of the Fed's decision coincides with the period of net inflows of ETFs, prompting speculation about a potential link between monetary policy and the flow of funds from crypto assets. However, causality cannot be assumed based on correlation alone. Investors typically focus on Fed policies for signals of risk appetite and liquidity, but ETF funds flows are also influenced by technical signals, market structures and issuer specific trends.

Bitcoin and Ethereum ETF are moving in opposite directions

While the spot Bitcoin ETF returned to net inflows, the US-listed spot Ethereum ETF recorded a net outflow of US$18.65 million on July 29. This divergence suggests that the demand for crypto ETF exposure is not evenly distributed across all digital assets. The outflow of funds from Ethereum funds, even if Bitcoin products attracted inflows, suggests that investors may be rotating between asset classes based on risk profiles, perceived opportunities, or macroeconomic factors.

Overall picture for 2026: Cumulative capital flows remain negative

Despite the positive performance on July 29, the year-to-date situation of the U.S. spot Bitcoin ETF remains severe. Data showed that in the week ended July 29, these funds still recorded a net outflow of $29.29 million, compared with a monthly net inflow of $204.67 million in July. Since its inception, the cumulative net inflow of Bitcoin ETF has totaled US$51.36 billion. BlackRock's IBIT is particularly prominent. Since its launch in January 2024, as of mid-July 2026, its cumulative inflow has reached approximately US$60.42 billion, making it the largest U.S. spot Bitcoin ETF in terms of inflow size. Fidelity's FBTC ranks second with approximately $9.96 billion. However, despite the rebound in inflows in July, the U.S. spot Bitcoin ETF as a whole will still be in deficit in 2026, with outflows ranging from US$4.76 billion to US$4.84 billion for the week ending July 20 to 27. This persistent deficit means that recent inflows, while impressive, have not yet marked a sustained reversal in institutional configuration.

Capital flow by period: this week (as of July 29)-US$29.29 million; July 2026 (month-to-date)+ US$204.67 million; cumulative since its establishment + US$51.36 billion; year-to-date outflow in 2026--4.76 billion to-4.84 billion.

Points for follow-up

Investors and analysts will be watching closely whether the July 29 inflow marks the beginning of a new trend or a brief pause in a broader outflow cycle. The divergence among ETF issuers and between different asset classes, coupled with the continued impact of the Federal Reserve keeping interest rates unchanged, means that the flow of funds from spot Bitcoin ETFs will likely remain volatile. Please pay close attention to daily fund flow data, issuer disclosures, and macroeconomic signals for clues on the direction of institutional encryption demand.