{"id":9258,"date":"2026-07-27T11:26:24","date_gmt":"2026-07-27T11:26:24","guid":{"rendered":"https:\/\/nile1.com\/en\/?p=9258"},"modified":"2026-07-27T11:26:37","modified_gmt":"2026-07-27T11:26:37","slug":"u-s-spot-bitcoin-etfs-bleed-465-million-as-oil-spikes-and-fed-rate-hike-concerns-mount","status":"publish","type":"post","link":"https:\/\/nile1.com\/en\/2026\/07\/27\/u-s-spot-bitcoin-etfs-bleed-465-million-as-oil-spikes-and-fed-rate-hike-concerns-mount\/","title":{"rendered":"U.S. Spot Bitcoin ETFs Bleed $465 Million as Oil Spikes and Fed Rate Hike Concerns Mount"},"content":{"rendered":"

U.S. spot Bitcoin<\/a> exchange-traded funds experienced a sharp reversal at the end of last week, shedding $465 million over two consecutive sessions as rising geopolitical friction in the Middle East and surging crude oil prices heightened inflation concerns and reignited fears of monetary tightening.<\/p>\n

Data compiled by Farside Investors shows that spot Bitcoin funds surrendered $225 million on Thursday and an additional $240 million on Friday. The abrupt two-day retreat snapped a seven-day run of net buying that had previously funneled roughly $1 billion into the asset class, peaking with a single-day inflow of $227 million on July 20. Despite the late-week sell-off, strong initial inflows earlier in the week kept the total weekly balance slightly in positive territory, with net additions standing at nearly $34 million.<\/p>\n

Redemptions were heavily concentrated in the market’s largest vehicle. BlackRock<\/a>‘s iShares Bitcoin Trust (IBIT) accounted for approximately $415 million\u2014or roughly 89%\u2014of the total capital withdrawn over the two-day downturn.<\/p>\n

The disproportionate withdrawals from BlackRock’s fund underscore how institutional desks utilize high-liquidity spot products for rapid tactical adjustments rather than long-term accumulation. Tim Sun, senior researcher at HashKey, noted that institutional allocators appear to be engaged in phased risk management near localized price bottoms. Because major financial institutions rely on IBIT as their primary vehicle for managing exposure, heavy redemptions in the fund indicate active short-term de-risking across institutional portfolios.<\/p>\n

The shift in crypto fund flows coincides with wider multi-asset market stress. U.S. stock funds recorded net capital outflows for a second consecutive week, while bond funds saw a prolonged streak of inflows come to an end. Sun pointed out that escalating U.S.-Iran geopolitical friction and persistent maritime attacks near the Red Sea pushed crude oil prices above $100 a barrel, lifting broader inflation expectations and leading bond markets to re-evaluate the trajectory of interest rates.<\/p>\n

Expectations for central bank easing have cooled as markets face renewed commodity price pressures. Federal Reserve<\/a> policy decisions remain a key variable for digital assets, which tend to draw greater institutional interest when low interest rates reduce yields on traditional cash holdings. The CME FedWatch tool<\/a> currently assigns a 34% probability that the Fed could implement a 25-basis-point rate hike at its upcoming monetary policy decision on July 29.<\/p>\n

Despite fund redemptions, Bitcoin held relatively firm in spot trading, changing hands at $65,300\u2014a 1.9% gain on a weekly basis, according to market data from CoinGecko<\/a>. Sentiment on prediction platform Myriad, operated by Dastan, reflects growing upside expectations, with market participants pricing a 37% chance that Bitcoin’s next major price target will reach $84,000, up from 20% earlier this month.<\/p>\n

Zach Pandl, head of research at Grayscale, suggested in a recent note that Bitcoin may have already established a cyclical bottom, provided the Federal Reserve refrains from raising borrowing costs further. Pandl pushed back against conventional market theories anticipating a deeper seasonal low in September or October, framing the Fed’s July 29 interest rate decision as a critical test for market sentiment.<\/p>\n

Stephen Wundke, strategy and revenue director at Algoz Technologies, noted that escalating geopolitical commentary and elevated energy costs forced investors into defensive cash positions late last week. However, Wundke emphasized that market participants generally view current price levels as the lower bound of the broader market cycle. Should military tensions de-escalate and crude prices settle closer to $80 a barrel, inflation concerns could recede and pave the way for steady ETF inflows to resume, though seasonal trading volumes in August historically remain muted before picking up toward year-end.<\/p>\n

\n

Read also:<\/h3>\n