$122 million flowed out of BlackRock's spot bitcoin exchange-traded fund IBIT, snapping a three-week streak of net inflows in the U.S. spot crypto ETF market. Redemptions concentrated in the market's largest ETF, again weighing on investor sentiment.

On Aug. 3 (local time), blockchain media outlet U.Today reported that the U.S. spot crypto ETF market recorded net outflows of $265.37 million. IBIT alone saw $122 million withdrawn, accounting for about half of the total net outflow.

The market is focusing on the fact that large-scale redemptions occurred in the largest U.S. spot bitcoin ETF. IBIT is the industry's biggest spot bitcoin ETF, managing $46.18 billion in assets under management.

The outlet analysed that some investors who bought into ETFs near bitcoin's peak moved to sell and lock in losses as the one-year return recently worsened to about minus 45.62 percent.

Outflows continued at rival ETFs. Fidelity's FBTC saw $64.95 million withdrawn and Ark 21Shares' ARKB lost $17.54 million. With redemptions occurring across major spot bitcoin ETFs at the same time, ETF-driven selling pressure is spreading across the broader market.

On-chain data also supported the trend. Analysts at blockchain analytics platform Arkham spotted 1,948.07 BTC moving from a BlackRock-linked wallet to Coinbase Prime, a trading platform for institutional investors. The transfer was worth about $122.03 million, almost matching IBIT's net outflow that day.

Even after the redemptions, BlackRock holds 737,118.26 BTC, equal to about 3.67 percent of total bitcoin supply.

Market participants are also watching how ETF outflows could affect bitcoin prices. Bitcoin recently traded around $63,700 and has yet to regain a key downtrend line on the weekly chart.

U.Today reported that some analysts are raising the possibility that bitcoin could enter a phase of forming a bottom for up to three months due to ETF selling pressure. Some forecasts also point to a short-term pullback to around $52,000, the realised price.

BlackRock is also pursuing a strategy to steer money leaving its bitcoin ETF into its own tokenised financial products. The company recently introduced BSTBL, an Ethereum-based tokenised fund, and BRSRV, a multichain platform. Both products adopt a structure designed to reduce volatility by investing in U.S. Treasuries, cash and repurchase agreements, in line with the U.S. GENIUS bill framework.

The market is also seeing analysis that BlackRock is strengthening a strategy to absorb funds leaving spot bitcoin ETFs into tokenised dollar products within its ecosystem. Market participants expect key questions ahead to be whether the redemption trend that began in spot bitcoin ETFs will spread across the market, and how much new investment demand BlackRock's tokenised products will draw.