US-listed cryptocurrency exchange-traded funds ended July on a mixed note, with spot Bitcoin ETFs recording their largest daily outflow in more than two weeks while spot Ethereum ETFs managed to remain in positive territory.
Spot Bitcoin ETFs posted $265.4 million in net outflows on Friday, July 31, erasing much of the strong inflow recorded the previous day. The withdrawals were led by BlackRock’s iShares Bitcoin Trust (IBIT), which lost $122.7 million, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $54.8 million in outflows. Grayscale’s Bitcoin Trust (GBTC) recorded another $52.6 million in redemptions, while Bitwise’s BITB and ARK 21Shares’ ARKB lost $17.8 million and $17.5 million, respectively.
Despite the sharp daily reversal, Bitcoin ETFs still finished July with modest positive net inflows after ending two consecutive months of heavy redemptions. The late-month selling nevertheless highlighted that institutional demand remains fragile following the sector’s difficult first half of 2026.
Spot Ethereum ETFs, meanwhile, attracted $15.4 million in net inflows on July 31, extending the category’s positive momentum and capping another month in which Ether funds outperformed their Bitcoin counterparts.
Bitcoin Funds Reverse After Strong Thursday
Friday’s selling came immediately after one of Bitcoin ETFs’ strongest sessions of the month.
On July 30, the products attracted $233.1 million in net inflows, led by $183.4 million into IBIT, raising hopes that institutional demand was beginning to recover after months of persistent outflows. Those gains proved short-lived as investors quickly reduced exposure before the weekend.
The concentration of redemptions among the largest funds suggests institutional investors were primarily responsible for the outflows rather than retail traders. BlackRock, Fidelity and Grayscale together accounted for more than $230 million of the day’s withdrawals.
Although no single catalyst was identified, the selling coincided with renewed macroeconomic uncertainty and continued caution surrounding cryptocurrency prices. Bitcoin remained below the key $65,000 level, while investors continued monitoring monetary policy expectations and broader risk appetite.
The July 31 outflow also marked Bitcoin ETFs’ largest single-day withdrawal since mid-July, underscoring how quickly institutional sentiment can shift even after a series of positive sessions.
Ethereum Continues to Outperform
While Bitcoin ETFs ended the month under pressure, Ethereum investment products maintained a steadier trajectory.
The $15.4 million inflow on July 31 contributed to a monthly total of approximately $365 million, allowing spot Ether ETFs to outperform Bitcoin products throughout July. Stronger institutional demand has been supported by growing interest in Ethereum’s role in tokenization, stablecoins and decentralized finance infrastructure.
The divergence reflects an evolving institutional allocation strategy. Rather than treating digital assets as a single investment category, many investors appear increasingly willing to differentiate between Bitcoin’s role as a macro asset and Ethereum’s position as the leading smart-contract platform.
Although Bitcoin ETFs remain significantly larger in terms of assets under management, Ethereum’s stronger monthly inflows suggest institutional capital is becoming more diversified across the crypto ecosystem.
Friday’s trading demonstrated that ETF flows remain highly sensitive to changing market conditions. Bitcoin products surrendered much of the previous day’s gains, while Ethereum funds continued attracting new capital, reinforcing one of the defining themes of July: institutions are returning to crypto selectively rather than indiscriminately.