Fidelity's spot Bitcoin (BTC) fund shed $43.1 million on Wednesday, though inflows into competing products still pushed the wider category back into positive territory for the session.
Key Points:
- Fidelity's FBTC posted the largest single-day redemption among US spot Bitcoin funds on July 29, at $43.1 million.
- BlackRock's IBIT took in $89.8 million the same session, lifting the group to $32.1 million in net inflows.
- An on-chain stress gauge rose for the second time in three days, but exchange flows are not confirming the move.
Fidelity FBTC Outflows Offset BlackRock IBIT Inflows
Flow data showed BlackRock's IBIT taking in $89.8 million on July 29, the same session in which Fidelity's FBTC recorded the largest single-day redemption across the group. The Fidelity fund now holds roughly $9.96 billion in cumulative net inflows, while the BlackRock product sits above $60 billion after Wednesday's addition, by far the largest total in the group. Ark Invest's ARKB gave up $14.62 million, and every other fund finished flat.
US spot Bitcoin ETFs closed the day $32.1 million in the black all the same, ending a four-session outflow streak that had drained $526.5 million since July 23. Ethereum (ETH) products moved the other way, swinging to a net outflow of $18.7 million.
Also Read: DEX Volume Sinks 26% In July As On-Chain Liquidity Thins Out
Axel Adler Jr. Reads Bitcoin Local Stress Signal
On-chain analyst Axel Adler Jr. said his Local Market Stress Index climbed to 16 on Wednesday, the second such impulse to register in three days. Price movement supplied the entire reading. Exchange flows and derivatives leverage both stayed flat, and that absence of confirmation is what kept the gauge from pushing higher.
Adler described the move as real but contained, and said the market looks stressed without capitulating. "The rise is real, but it is being sustained only by downside price stress," he wrote, adding that a climb above 40 looks unlikely while exchange flows stay quiet.
The distinction matters because the same index reached 52 on July 28, when flow stress jumped to roughly 88 and coins moved onto exchanges alongside a falling price. A June 4 reading hit 71 under the same combination. Both episodes turned an ordinary dip into genuine market stress, and neither resembles what the indicator is registering this week.
Bitcoin ETF Flows Track The Fed Rate Path
The Federal Reserve voted 9-3 on Wednesday to hold its benchmark rate at 3.5% to 3.75%, with three regional bank presidents dissenting in favor of an increase under Chair Kevin Warsh.
Some analysts treated the redemptions before the decision as temporary de-risking, and traders now price two quarter-point increases before year-end.
July has left the funds close to break-even despite the churn, with monthly net inflows of $204.7 million set against weekly outflows of $29.29 million.
Bitcoin traded near $64,500 on Thursday, just above its 20-day simple moving average of $64,468 but far under the 200-day line at $71,599. The token has not revisited the $125,000 peak it set in October 2025.
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