Bitcoin ETFs Experience Stagnation as BTC Prices Decline
The inflow momentum for Bitcoin ETFs has stalled amidst a dip in prices and political challenges, marking a significant shift in investor sentiment.
The steady inflow of funds into US spot Bitcoin ETFs has hit a sudden pause as a result of renewed negative market sentiment and political pressures. On July 1, 2025, these ETFs experienced a total of $342.25 million in net outflows—a stark contrast to the previous 15-day surge that attracted $4.73 billion since mid-June.
The top loser was Fidelity’s FBTC, which saw $172.73 million pulled out, followed by Grayscale’s GBTC at $119.51 million. Other significant withdrawals included ARK21Shares’ ARKB with $27.03 million and Bitwise’s BITB with $22.98 million.
Bitcoin ETF Flow
GBTC: $119.5m outflow
Largest GBTC outflow since January 7, 2025
— Farside Investors (@FarsideUK) July 1, 2025
Compared to this, funds focused on Ethereum attracted $40.68 million in inflows.
Political Influences
This downturn in Bitcoin ETF flows aligns closely with the US Senate’s recent approval of a massive spending bill known as the “Big Beautiful Bill,” valued at $3.3 trillion and passed with a narrow 51-50 vote. Notably, Vice President JD Vance cast the tie-breaking vote, though the bill did not address matters related to Bitcoin, crypto mining, or staking, leaving many in the crypto space dissatisfied.
Explore: Trump’s Big Beautiful Bill Bitcoin Exempt: Best Meme Coin to Buy?
SEC Guidance for Crypto ETFs
In a parallel development, the SEC provided clarity for prospective crypto ETF issuers on July 1, 2025. Their new guidance outlines the necessary details applicants must submit, which could assist in securing approval for crypto-linked funds. The advice comes as interest in Ethereum-based products continues to rise, emphasizing the need for clear standards in valuation, custody, and the verification processes behind these financial products.
Explore: Crypto ETF Guidance: What the SEC Now Requires From Issuers
Key Takeaways
- The recent downturn in Bitcoin ETF inflows is linked to the Senate’s passage of the “Big Beautiful Bill.”
- The SEC has issued comprehensive guidance for crypto ETF applications, necessitating full transparency regarding valuation, custody, and surveillance systems.
