Bitcoin ETF outflows reached $333M, led by BlackRock’s IBIT.
Liquidity inventory ratio plunged despite earlier 2025 accumulation strength.
SEC’s in-kind rule aims to reduce ETF transaction inefficiencies.
Bitcoin saw a late-July price drop, following a noticeable dip in ETF demand and liquidity pressures. Data from CryptoQuant highlighted that sell-side liquidity grew while liquidity inventory declined.
Reasons for Bitcoin's Decline at the End of July
“ETF inflows were intermittent and not stable during periods when funds were withdrawn from ETFs. There was no alternative demand to compensate for this shortfall.” – By @ArabxChain pic.twitter.com/9t0KVFqRe8
— CryptoQuant.com (@cryptoquant_com) August 5, 2025
Despite strong accumulation earlier in 2025, the liquidity inventory ratio dropped significantly. The absence of consistent ETF inflows left a gap in market demand.
According to the report, accumulator address activity, shown by purple zones on the chart, failed to provide necessary support. ETF demand fluctuated sharply during the period, causing additional stress.
The ETF demand line revealed no sustained trend, signaling short-term hesitation among institutional investors. With no strong alternative sources of demand emerging, Bitcoin became more exposed to the impact of ETF outflows.
$333 Million in Daily ETF Outflows
Meanwhile, SoSoValue data US spot Bitcoin ETFs recorded a net outflow of $333.19 million. BlackRock’s iShares Bitcoin Trust (IBIT) led with a $292.21 million outflow. Fidelity’s FBTC followed, losing $40.06 million, while Grayscale’s GBTC posted a $9.92 million outflow.
Despite these daily losses, total cumulative net inflows across US Bitcoin ETFs remained strong at $53.85 billion. Total net assets reached $147.96 billion, accounting for 6.46% of Bitcoin’s market cap.
Daily trading volumes stayed high at $2.50 billion, indicating continued investor activity despite recent withdrawals.
Regulatory Shift Toward In-Kind Transactions
In a recent official statement, the US Securities and Exchange Commission approved the in-kind creation and redemption of cryptocurrency exchange-traded products (ETPs). This replaces the previous cash-only rule that applied to both Bitcoin and Ether ETPs.
The new mechanism allows authorized participants to exchange ETF shares directly for the underlying crypto assets. Chairman Paul S. Atkins stated that the change would lower transaction costs and improve fund efficiency.
At press time, Bitcoin (BTC) was trading at $114,478.13, reflecting a 0.03% gain over the last 24 hours.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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