Bitcoin ETF recorded $172 million in inflows at the end of July, despite...

Why did Bitcoin ETF turn positive inflows in July?

U.S. -listed spot bitcoin exchange-traded funds resumed monthly net inflows in July, but a strong sell-off at the end of the month suggested that investor confidence remained fragile as it entered August. The funds attracted a net inflow of $172.4 million in July, reversing two consecutive months of outflows. Previously, the total outflow in May and June was nearly US$7 billion, of which US$4.5 billion was withdrawn in June, setting a record for the largest monthly outflow in 2026. Compared with the size of the sell-off in the past two months, growth in July appeared moderate. At the same time, a net outflow of $265.4 million last Friday also undermined that performance-the largest one-day outflow since July 13. Weekly funds flows in the last week of the month also turned negative. In the week ended July 31, the Bitcoin ETF had a net outflow of US$61.53 million, after maintaining net inflows for three consecutive weeks. The month-end sell-off coincided with renewed volatility in Bitcoin prices, suggesting that some investors chose to reduce exposure rather than bring the same risk level into August. As a result, the monthly results reflect a partial recovery in demand rather than a complete reversal of weak capital flows throughout the year.

How much is Bitcoin ETF lagging behind in 2026?

Although July ended positive, the spot Bitcoin ETF is still deeply negative this year as a whole. These products recorded a net outflow of approximately US$5.29 billion in the first seven months of 2026. Only monthly net inflows were achieved in March, April and July, which together attracted approximately US$3.46 billion. In January, February, May and June, a total of US$8.75 billion was generated. This model suggests that investors continue to use Bitcoin ETFs as a liquidity risk management tool rather than just as long-term allocation products. A strong selling month weighed out a recovery in demand, especially as volatility in bitcoin prices and broader financial markets intensified. Long-term cumulative data remains strong. Since its launch, the cumulative net inflow of the U.S. spot Bitcoin ETF has reached US$51.32 billion, and the total net assets as of the end of July were US$76.29 billion. These figures show that even after the withdrawal of funds in 2026, these products still hold large amounts of institutional and retail capital. However, year-to-date net outflows suggest that new demand is not enough to offset redemptions from existing holders.

Investor Revelation

July halted the outflow of funds from Bitcoin ETF for two consecutive months, but the withdrawal of funds at the end of the month showed that investors still tend to reduce exposure quickly when volatility increases. Capital flows in August will reveal whether July was the beginning of a recovery or a brief pause in selling.

Why does Ethereum ETF perform better than Bitcoin funds?

Demand for the Ethereum ETF became more stable in July, achieving net inflows for four consecutive weeks, and ending at the end of the month with a net income of US$365.2 million. This figure is more than twice the monthly net inflow of Bitcoin ETFs and is the second time that Ethereum products have recorded positive monthly growth in 2026-following an inflow of $356 million in April. Despite improvements in July, the Ethereum ETF still has a net outflow of approximately US$1.1 billion year-to-date. However, four consecutive weeks of net inflows suggest that some investors are rebuilding their exposure to Ethereum, even as demand for Bitcoin products weakens at the end of the month. This difference may reflect asset rotation within crypto investment products rather than a widespread increase in risk appetite. Investors can transfer funds between Bitcoin, Ethereum and other token ETFs without having to transfer funds back to cryptocurrency exchanges or directly manage digital assets.

Can XRP ETF maintain its leading position in 2026?

The XRP ETF also maintained positive demand, attracting a net inflow of US$27.3 million in July. This marks the fifth month of positive growth for the product in 2026 and pushes year-to-date net inflows to approximately US$343 million. This performance makes XRP ETF one of the stronger crypto fund categories this year. Although its total assets and trading activity are still smaller than Bitcoin and Ethereum products, its record of capital flows is more stable. A comparison between categories shows that demand for crypto ETFs is increasingly asset-specific. Bitcoin products still control the largest asset size, but also suffered the most serious redemptions in 2026. Ethereum funds recovered in July, while XRP products achieved positive inflows in most months. The next test for Bitcoin ETFs is whether July's moderate net inflows can continue after $265.4 million was withdrawn at the end of the month. If weekly capital flows return to sustained net inflows, it means that investors are rebuilding exposure; if further redemptions occur, it means that the positive monthly total in July masks continued caution underneath the surface.