Bitcoin ETFs Suffer First Outflows in Weeks as Investors Brace for Q3

Massive $342 Million Exodus Marks End of 15-Day Inflow Streak

Hang onto your hats, crypto fans! The U.S. spot Bitcoin ETFs just hit a major speed bump, experiencing net outflows for the first time in nearly three weeks. Investors are getting jittery as we approach what's traditionally been a slower period for Bitcoin.

Get this: on July 1, the 12 U.S.-listed spot Bitcoin ETFs bled out a staggering $342.25 million, snapping a solid 15-day streak of inflows that had raked in a cool $4.73 billion since mid-June. That's a major shift in the wind, folks!

Leading the charge out the door was Fidelity's FBTC, with a whopping $172.73 million in outflows. Not far behind, Grayscale's GBTC saw $119.51 million redeemed. ARK 21Shares' ARKB and Bitwise's BITB also joined the exodus, coughing up $27.03 million and $22.98 million respectively. It's a full-on retreat!

In a surprising twist, BlackRock's IBIT, the star performer during the recent inflow spree, stayed flat with zero net movement on the day. The rest of the pack? Dead silent, no activity at all.

Meanwhile, over in Ethereum land, it's a different story. Spot Ethereum ETFs just notched their third straight day of net inflows. On Tuesday, ETH-focused funds pulled in $40.68 million. BlackRock's ETHA led the charge with $54.84 million in net additions, while Grayscale's ETHE chipped in $9.96 million. But hold on, Fidelity's FETH took a hit with $24.11 million in outflows, putting a dent in the gains.

Coinciding with this wild ride, the U.S. Senate passed the so-called "Big Beautiful Bill" on July 1, a massive $3.3 trillion spending package that barely squeezed through with a 51-50 vote, thanks to Vice President J.D. Vance breaking the tie. Talk about cutting it close!

Despite some heavy lobbying from pro-crypto folks, the 1,000-page behemoth didn't include any specific goodies for Bitcoin, crypto mining, or staking. A real letdown for the digital asset crowd.

Now, the bill's headed back to the House for some last-minute tweaks before the July 4 deadline set by the prez for his signature. The lack of crypto love in the bill, despite early optimism, might be spooking investors and fueling this profit-taking frenzy in Bitcoin funds.

The crypto market at large took a hit, dropping nearly 2.3% to an intraday low of $3.36 trillion. Bitcoin itself took a tumble, falling close to 2% to a session low near $105,000 on Wednesday morning. It's a rollercoaster out there!

According to CoinGlass, total crypto market liquidations hit $242.6 million on July 1, with long position liquidations taking the biggest beating. Looks like the bulls either bailed or got forced out, locking in profits or dodging the downside, while the bears held their ground.

Get this: historically, the third quarter has been a snooze fest for Bitcoin. Since 2013, it's averaged just a 5.47% gain in Q3, making it the weakest link of the four quarters. That might be why investors are playing it safe and repositioning.

As we wrap this up, Bitcoin's clawed back some of its losses and is now hovering above $107k, a solid 40% jump from its year-to-date low of $76,300 back in early April. Hang tight, crypto warriors, it's gonna be a wild ride!

Disclosure: Don't take this as investment advice, folks. We're just here to educate and entertain, so do your own research before diving in!