Spot crypto exchange-traded funds saw a sharp reversal on Friday, with both Bitcoin and Ethereum products recording their second-largest daily outflows of the year.
Investors pulled $812 million from Bitcoin funds — second only to the $1.15 billion outflow on February 25 — while Ethereum ETFs lost $153 million, ending a record 20-day inflow streak.
ETFStore President Nate Geraci called it an “odd end” to what he described as “perhaps the most important week ever” for crypto, citing major regulatory moves including in-kind redemption approvals, exchange-backed ETF fast-track filings, and the SEC’s launch of Project Crypto.
The US Securities and Exchange Commission made multiple policy shifts throughout the week, beginning with its approval of in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs.
This change allows ETF shares to be exchanged directly for the underlying crypto assets, rather than cash, which reduces costs and helps ETFs better track the price of Bitcoin and Ethereum.
On the same day, Cboe filed for formal approval of generic listing standards for crypto ETFs, while analysts say NYSE Arca is expected to follow. Nasdaq has also submitted a separate listing‑standards proposal, though coverage of a coordinated filing among all major exchanges is still pending.
Meanwhile, SEC Chair Paul Atkins unveiled Project Crypto — a deregulation push aimed at overhauling outdated securities rules to accommodate on-chain markets, tokenisation, and financial “super-apps.”
In a Thursday speech, Atkins called for “fit-for-purpose” guidance to clarify which tokens are securities and streamline the creation of regulated crypto products.
Despite Friday’s ETF outflows, both Bitcoin and Ethereum ended July on strong footing.
Bitcoin closed the month above $116,000 — a new monthly all-time high — before slipping back to around $114,000 on Saturday.
Ethereum finished July at $3,700, returning to levels last seen in March and December 2024, though it has since dipped to roughly $3,500.
