Bitcoin ETFs May Face Outflows Despite Strong July Gains and Regulatory Advances

Key Points

1. Bitcoin ETFs led the withdrawals with $812 million pulled, the largest single-day outflow in five months.

2. Ethereum ETFs saw $153 million exit, halting a 20-day streak of inflows that had brought in over $5 billion.

3. July was a historic month for US crypto ETFs, with $12.8 billion in fresh capital entering the market, averaging $600 million daily.

4. Despite positive regulatory signals, such as SEC Chair Paul Atkins’ 'Project Crypto' initiative, ETF outflows occurred.

5. The recent pullback may represent profit-taking by investors after July’s strong performance.