BlackRock’s spot Bitcoin ETF, IBIT, recorded its most significant outflow in over two months on Monday, signaling a short-term shift in investor sentiment amid recent Bitcoin price volatility. The fund saw $292.5 million in outflows, ending a 37-day streak of consistent inflows. Previous ETF outflows had already hinted at a potential cooling phase, which now appears to be unfolding across multiple spot Bitcoin funds. Bitcoin fell over the weekend, retreating 8.5% from its July 14 all-time high of $123,000 to reach a low of $112,300 on Sunday, before rebounding to around $115,000 by late Monday trading. Despite the recent correction, BlackRock’s IBIT remains one of the strongest-performing spot Bitcoin ETFs in the U.S., having attracted a net $5.2 billion in July alone—accounting for 9% of all inflows since the fund launched in January 2024. ETF Outflows Slow as Bitcoin Finds Support Monday marked the third consecutive trading session where U.S.-listed spot Bitcoin ETFs saw net outflows. Fidelity’s FBTC lost approximately $40 million, while Grayscale’s GBTC recorded a smaller $10 million outflow. Most other ETFs, including those from Valkyrie and VanEck, recorded no movement. Bitwise’s BITB stood out with a modest $18.7 million inflow, indicating that some investors remain bullish amid the dip. Still, Monday’s ETF outflow total was far milder compared to Friday’s $812 million—a sign that Bitcoin’s bounce from the $112,000 support level may be restoring confidence. Broadly speaking, capital movement into institutional digital asset products remains strong. According to Bloomberg ETF analyst Eric Balchunas, digital assets and hedge funds have become leading beneficiaries of capital flows this year, outpacing private equity and credit. JPMorgan strategist Nikolaos Panigirtzoglou echoed that sentiment, stating that digital assets have become the fastest-growing segment in the alternative investment landscape. Through July 22, the asset class attracted $60 billion in inflows, following a record-setting $85 billion in 2024. Bitcoin Volatility Drops, Attracting Larger Investors Another key trend encouraging institutional participation is declining Bitcoin volatility. Balchunas noted that the 90-day rolling volatility for BlackRock’s IBIT fund has fallen below 40 for the first time since launch, down from over 60 in January. This stabilization has been critical in drawing in larger investors, with Balchunas adding that Bitcoin is now experiencing fewer “vomit-inducing drawdowns.” “Stability is key,” he remarked last week, suggesting Bitcoin’s reduced volatility may give it a real shot at broader adoption—even as a functional currency. The post BlackRock’s Bitcoin ETF Sees Largest Outflow Since May as BTC Rebounds Slightly appeared first on TheCoinrise.com .