Institutional Shake-Up: Bitcoin ETFs Bleed $812M as Big Money Rotates Portfolios

Wall Street's crypto love affair hits a speed bump—ETF outflows signal tactical retreat.

Rebalancing act: Institutions take profits after Q2 rally, but don't call it a surrender.

The $812 million exodus looks dramatic until you remember these funds still hold $28B in BTC—classic 'sell the news' behavior from suits who still don't understand HODLing.

• Bitcoin spot ETFs record $812M in net outflows, marking the second-largest daily withdrawal in their history.
• Ethereum ETFs break a 20-day inflow streak, with $152M in outflows signaling a possible institutional portfolio reshuffle.
• Altcoin ETFs gain momentum, as Bloomberg analysts project a 95% chance of SEC approval for Solana, XRP, and Litecoin ETFs this year.

Bitcoin recorded a shock institutional loss, as spot Bitcoin ETFs recorded a mammoth $812.25 million in net outflows last Friday, which was the second-largest one-day exodus in the asset class’s history.

The historic withdrawal cleared out one entire week’s inflows, reducing cumulative net inflows to $54.18 billion. With information data from SoSoValue, collective assets under management (AUM) of all the spot Bitcoin-based ETFs now stand at $146.48 billion, covering merely 6.46% of the entire bitcoin market cap.

Leading the redemptions were ARK Invest and Fidelity. Redemption for Fidelity’s FBTC was $331.42 million, while ARK’s ARKB was close behind at $327.93 million in redemptions. Grayscale’s existing fund GBTC also recorded $66.79 million in outflows, while BlackRock’s IBIT recorded the relatively minor $2.58 million loss.

Even with redemptions ongoing, interest from investors was nevertheless healthy. Daily trading across all of the spot Bitcoin ETFs surged to $6.13 billion; IBIT added $4.54 billion of its own, which indicates institutional demand hasn’t entirely disappeared but is possibly taking on a different form.

Ethereum ETFs End 20-Day Inflow Streak

Even the ETFs related to ethereum did not escape the trend. Breaking the historic 20-day inflow streak, the spot Ether ETFs posted net outflows of $152.26 million on the same day. It was their longest inflow streak to date, and this abrupt ending can suggest a larger institutional strategy readjustment.

Grayscale’s ETHE led redemptions for the day with $47.68 million, as did Bitwise’s ETHW with $40.30 million, while Fidelity’s FETH suffered $6.17 million in losses. BlackRock’s ETHA was flat at $10.71 billion in AUM.

Total trading of Ether ETFs was $2.26 billion, of which the Grayscale product accounted for nearly $289 million. Ether ETF AUM now stands at $20.11 billion, or 4.70%, of the aggregate market cap of Ethereum.

Just two weeks prior, Ether ETFs were setting records. July 16 had them registering $726.74 million in net inflows, the highest one-day inflow since launch, following another $602.02 million on July 17. It was largely due to rising institutional demand for Ethereum as a treasury asset.

BitMine, Ether Machine Push ETH Treasury Holdings Higher

Even during the recent volatility in ETFs, Ethereum is further gaining ground in corporate treasuries. Last week, investment company Ether Machine, backed by Pantera Capital and Kraken, acquired 15,000 ETH in its long-term strategic positions.

BitMine Immersion Technologies made headlines when it aggregated $2.12 billion of ETH in 16 days, becoming the biggest corporate owner of Ethereum in one swoop. Corporate treasuries in aggregate now own roughly 2.73 million ETH, or about 2.26% of the asset’s circulating supply, according to Strategic Ether Reserves.

Genius Group Now Holds 200 Bitcoin

Whereas Bitcoin and Ethereum ETFs experience a reset, altcoin ETF prospects pick up pace. Bloomberg’s senior ETF analysts now suggest a 95% chance of the SEC blessing Solana (SOL) spot ETFs and XRP, along with Litecoin (LTC), before the end of the year, versus the earlier estimate of 90%.

There is also speculation that the large-cap crypto index ETF, tracking multiple digital assets, is set to receive approval this week. Once approved, these types of products will provide mainstream investors with diversified exposure to various cryptocurrencies, taking a giant leap towards the mainstream adoption of cryptocurrencies.

Even institutional Bitcoin demand is spilling into corporate policy. Singapore-registered learning technology company Genius Group has just purchased 28 BTC, doubling the company’s holdings to 200 BTC. This is part of the company’s aggressive plan of building a 10,000 BTC treasury reserve, securing Bitcoin’s slot as the corporate hedge in uncertain macroeconomic conditions.