Bitcoin (BTC) moved through another volatile trading session after institutional investors withdrew capital from U.S. spot Bitcoin ETFs for the first time in more than a week, interrupting a seven-day run of inflows that had brought in nearly $1 billion in fresh capital.

U.S. spot Bitcoin ETFs posted $225.2 million in net outflows on Thursday, July 24. The reversal came as escalating geopolitical tensions between the United States and Iran added uncertainty across global financial markets. Higher oil prices, inflation concerns, and expectations around the Federal Reserve’s next policy decision also contributed to a more cautious trading environment.

ETF flows are closely watched because spot Bitcoin funds have become a major regulated access point for institutions and financial advisers seeking exposure to BTC without directly holding the asset. Daily inflows and outflows do not capture all Bitcoin demand, but they offer a timely measure of how traditional-market investors are positioning during periods of macroeconomic stress.

Bitcoin ETF Outflows End Seven-Day Streak

The $225.2 million in net outflows marked the first negative session for U.S. spot Bitcoin ETFs since July 13. Despite the single-day reversal, the broader weekly picture remained positive, with the ETF sector ending the five-day trading week with approximately $274 million in net inflows.

BlackRock’s IBIT accounted for most of the withdrawals, with investors pulling $202.5 million from the fund. Several other major issuers also recorded modest outflows. Fidelity’s FBTC, Bitwise’s BITB, ARK 21Shares’ ARKB, Franklin Templeton’s EZBC, and WisdomTree’s BTCW all ended the day in negative territory.

Morgan Stanley’s MSBT was the only fund listed with positive flows, attracting $5 million in fresh investments during the session.

The drop in ETF demand occurred alongside broader anxiety in financial markets. The military conflict between the United States and Iran has extended into a fifth month, prompting investors to reduce exposure to higher-risk assets. U.S. equities also weakened as elevated oil prices continued to fuel concerns about inflation.

Federal Reserve Meeting Remains a Key Market Focus

Although geopolitical risks remain elevated, recent diplomatic developments have offered a limited degree of optimism. Reports indicate that President Donald Trump ordered a temporary pause in military strikes after thirteen consecutive days of attacks. The decision followed meetings between Omani officials and Iranian representatives in Tehran, where both sides discussed reopening the Strait of Hormuz, one of the world’s most important energy shipping routes.

Uncertainty, however, remains significant. Houthi activity around the Bab al-Mandab Strait continues to disrupt international trade and raise concerns across global markets. Energy-market disruptions remain relevant for digital assets because sustained oil-price pressure can complicate the inflation outlook, which in turn influences expectations for interest rates and liquidity conditions.

BTC traded near $64,300 at the time of writing, recording only modest daily gains as buyers remained cautious. Market participants continued to assess geopolitical developments alongside broader macroeconomic risks, including the Federal Reserve’s upcoming policy decision. The Fed’s guidance is especially important for risk assets because higher-for-longer rates can make speculative and non-yielding assets less attractive relative to cash and short-duration bonds.

Ethereum performed more strongly during the same period. Spot Ethereum ETFs attracted $26.3 million in fresh inflows on Thursday, extending a five-day streak of positive institutional demand. The contrasting flows indicated that investor interest had shifted rather than disappeared entirely, with some market participants favoring Ethereum over Bitcoin under current conditions.