The Bitcoin spot ETF market has recently staged a drama of "ice and fire." Last week, the entire market suddenly changed its face, ending a streak of seven weeks of net inflows, with a single-week net outflow reaching as high as $643 million. When this figure came out, people in the industry were taken aback — after all, the previous weeks had been flourishing.

Interestingly, amidst the gloom, BlackRock's IBIT managed to attract $355 million against the trend. This giant now has a cumulative net inflow of $57.6 billion, definitely a top player in the industry. I carefully compared the data and found that the outflow from several other ETFs was basically offset by IBIT, which shows how terrifying the influence of large institutions can be.

Market analysts provided several explanations: first, some investors chose to take profits after Bitcoin surged; second, increased volatility in traditional financial markets led to a decrease in risk appetite; third, seasonal factors, as summer has always been a low season for the cryptocurrency market.

But what is most intriguing is the divergence in capital flows. Retail-driven ETFs are clearly withdrawing funds, while institution-led products remain strong. This phenomenon suggests that professional investors may view this adjustment as an opportunity to increase their positions. Traders have revealed that large trades have noticeably increased in recent weeks, all above the million-dollar level.

Now everyone is watching the next key moment — if net inflows can be restored in the next two weeks, then this adjustment will just be a minor episode; but if outflows continue, it may mean that market sentiment has truly turned. However, it should be noted that the cryptocurrency market is known for its volatility, and such a level of capital flow could turn around in the time it takes to have a lunch.