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Spot Bitcoin exchange-traded funds in the U.S. saw net outflows for the first time in nearly three weeks as investors positioned cautiously ahead of what has historically been a slower quarter for Bitcoin.<\/p>\n
According to data<\/a> from SoSoValue, the 12 U.S.-listed spot Bitcoin ETFs recorded a combined $342.25 million in net outflows on July 1. This marked the end of a robust 15-day inflow streak that had brought in a cumulative $4.73 billion into the funds since mid-June.<\/p>\n Fidelity\u2019s FBTC led the withdrawals with $172.73 million in outflows, followed by Grayscale\u2019s GBTC, which saw $119.51 million redeemed. ARK 21Shares\u2019 ARKB and Bitwise\u2019s BITB also contributed to the net redemptions, recording outflows of $27.03 million and $22.98 million, respectively.<\/p>\n Notably, BlackRock\u2019s IBIT, the top-performing ETF during the recent inflow streak, saw zero net movement on the day, while the remaining ETFs also recorded no activity.<\/p>\n In contrast, spot Ethereum ETFs recorded a third consecutive day of net inflows. On Tuesday, ETH-focused funds collectively attracted $40.68 million. The majority of these inflows came from BlackRock\u2019s ETHA, which posted $54.84 million in net additions, and Grayscale\u2019s ETHE, which added $9.96 million. These gains were partially offset by $24.11 million in outflows from Fidelity\u2019s FETH.<\/p>\n <\/p>\n The sharp reversal in Bitcoin ETF flows coincided with the U.S. Senate\u2019s passage of the so-called \u201cBig Beautiful Bill\u201d on July 1, a sweeping $3.3 trillion spending package passed with a narrow 51\u201350 vote, with Vice President J.D. Vance breaking the tie.<\/p>\n Despite lobbying from pro-crypto lawmakers, the 1,000-page legislation did not include any specific provisions related to Bitcoin, crypto mining, or staking, disappointing portions of the digital asset industry.<\/p>\n The bill will now return to the House for final reconciliation ahead of the July 4 deadline set by the president for signature. The absence of crypto-related language in the legislation, despite initial optimism, may have contributed to the profit-taking seen across Bitcoin-related funds.<\/p>\n The broader cryptocurrency market reacted by dropping nearly 2.3% to an intraday low of $3.36 trillion as of press time. Bitcoin (BTC) dropped close to 2% to a session low near $105,000 on Wednesday morning.\u00a0<\/p>\n According to CoinGlass data<\/a>, total crypto market liquidations reached $242.6 million on July 1, with the majority stemming from long position liquidations. This indicates that bullish traders either closed or were forced out of their positions, likely securing profits or limiting downside exposure, while bearish positioning remained intact.<\/p>\n Historically, the third quarter has underperformed relative to other periods, as noted<\/a> by analysts. Since 2013, Bitcoin has averaged just a 5.47% gain in Q3, making it the weakest of the four quarters in terms of historical returns, according to CoinGlass data. This trend may be contributing to the cautious repositioning among investors.<\/p>\n When writing, Bitcoin had shed some of its intraday losses and was back above $107k, up nearly 40% from its year-to-date low of $76,300 seen in early April.<\/p>\n <\/p>\n