The decline in capital was not isolated: seven major Bitcoin-focused funds recorded net outflows. The largest withdrawal was from ARKB, which shed $102.03 million, followed by FBTC with $80.17 million and BITB losing $36.73 million. Other notable outflows included GBTC ($24.09 million), BTC ($16.7 million), BTCO ($12.2 million), and HODL ($6.51 million). Five other ETF products showed no capital movement during the session.
Bitcoin ETFs face heavy withdrawals. SoSoValue.This wave of capital exit coincides with a notable surge in trading volumes, reaching their highest levels since late May. Elevated trading activity often mirrors institutional repositioning, especially when driven by macro-level catalysts.
Market analysts attribute this shift to a broader decline in crypto asset valuations, fueled in part by political unrest. Specifically, tensions between entrepreneur Elon Musk and U.S. President Donald Trump have sparked uncertainty, pushing investors to de-risk. In previous instances, similar interpersonal disputes involving key market figures have triggered short-term liquidity outflows and increased volatility across digital asset classes.
Contrasting with the Bitcoin ETF outflows, the Ethereum spot ETF sector recorded a net inflow of $11.26 million on the same day. The IBIT fund led the positive trend with a gain of $34.65 million, while FETH posted a moderate outflow of $23.4 million.
Ethereum ETFs attract fresh capital. SoSoValue.This divergence between Bitcoin and Ethereum fund flows suggests that institutional sentiment toward the two leading cryptocurrencies is evolving independently. Ethereum's growing relevance in smart contracts, Layer 2 ecosystems, and institutional staking could be insulating it against the broader market drawdown affecting Bitcoin.
Meanwhile, activity in the Hong Kong crypto ETF market remained muted, with no notable capital flows in either Bitcoin or Ethereum spot products. This reflects a regional decoupling, where Asia-based ETFs often trail behind U.S. fund movements in terms of volume and reactivity to global news cycles.
For investors, this bifurcation highlights the need for differentiated strategies when allocating capital across digital asset classes. While Bitcoin remains a benchmark for the crypto market, Ethereum’s infrastructure-driven use cases may offer relative resilience in volatile conditions.