BlackRock’s IBIT Rescues U.S. Bitcoin ETFs from a Four-Day Slump

After a challenging stretch of consistent capital exits, U.S. spot Bitcoin ETFs finally broke their losing streak on July 29, posting a net inflow of $32.1 million. While the positive turn ended four consecutive days of outflows, the recovery was far from a market-wide rally. Instead, the "green" finish was the result of a single fund’s heavy lifting, highlighting a significant divergence in investor sentiment across different institutional products.

A Single-Handed Market Recovery

BlackRock’s iShares Bitcoin Trust (IBIT) was the sole engine behind the day's positive performance, attracting a substantial $89.8 million in net inflows. This surge was more than enough to offset the combined $57.7 million that exited Fidelity’s Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF. Because every other listed spot Bitcoin fund reported zero net movement for the session, the market’s ability to snap its losing streak rested entirely on BlackRock’s shoulders. Without IBIT’s contribution, the sector would have faced a fifth day of contraction.

Contextualizing the Comeback

Despite the successful pivot to positive territory, the broader picture remains cautious. The $32.1 million inflow recovered only a small fraction of the $526 million lost during the preceding four-session period, leaving the five-day aggregate nearly $500 million in the red. Analysts suggest that while BlackRock’s performance is impressive, it does not yet signal a universal return of institutional demand. For a true market-wide recovery to be confirmed, the industry will need to see positive momentum spread to other issuers rather than relying on a single dominant player to maintain the headline total.