In a surprising development, the U.S.-listed spot Bitcoin funds recorded their first net outflows in nearly three weeks, raising concerns in the market amid anticipation of a cloudy future following the passage of a massive legislation devoid of any support for cryptocurrencies.

According to SoSoValue data, the 12 U.S. spot Bitcoin funds experienced net outflows of $342.25 million on July 1, thereby ending a strong 15-day inflow streak during which the markets injected approximately $4.73 billion since mid-June.

The outflows were led by the Fidelity FBTC fund, with a massive withdrawal of $172.73 million, followed by Grayscale GBTC with $119.51 million, and then ARKB and BITB with $27.03 million and $22.98 million respectively. Meanwhile, BlackRock's IBIT fund, the most active in recent weeks, saw no change in net flows.

In contrast, spot Ethereum funds recorded their third consecutive day of positive flows, attracting $40.68 million, led by BlackRock's ETHA with $54.84 million, followed by Grayscale's ETHE with $9.96 million, despite an outflow of $24.11 million from Fidelity's FETH.