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Spot Bitcoin ETFs See $2.96B Outflows as BTC Drops to $73K

Spot Bitcoin ETFs Record First 10-Day Outflow Streak – Nearly $3 Billion Withdrawn as BTC Price Falls to $73,000

Key Takeaways

• US spot Bitcoin ETFs recorded their first 10-day consecutive outflow streak between 15 and 29 May.
• Total net outflows reached $2.96 billion during that period.
• BlackRock’s IBIT accounted for $2.11 billion in withdrawals, the largest share among issuers.
• Bitcoin’s price declined from $80,000 to around $73,000 during the outflow period.
• The OI-weighted funding rate for Bitcoin turned strongly positive while spot demand weakened.

Ten Consecutive Days of Net Outflows Mark a First for Spot Bitcoin ETFs

For the first time since their launch, spot Bitcoin ETFs experienced ten consecutive trading days of net outflows. Between 15 May and 29 May, investors withdrew a combined $2.96 billion from these products.

Data cited from Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) recorded the largest share of withdrawals. Over the ten-day period, IBIT saw $2.11 billion in outflows. Fidelity’s FBTC followed, although specific figures for FBTC were not detailed beyond its position as the second largest contributor to the overall outflows.

Several other asset managers reported zero net flows during the same period, indicating that the outflows were concentrated in selected products rather than evenly distributed across all issuers. Morgan Stanley’s MSTB, a relatively new entrant in the market, recorded $5.4 million in outflows over the ten days.

The ten-day streak represents a sustained shift in capital movement, rather than isolated daily fluctuations. For ETF investors and market participants, consecutive outflows of this length signal a coordinated withdrawal trend rather than short-term portfolio rebalancing.

BlackRock’s IBIT Leads Withdrawals as Retail Activity Comes Into Focus

BlackRock’s IBIT accounted for the majority of the recorded outflows, with $2.11 billion leaving the fund during the period. Within the crypto community, some market participants emphasized that ETF issuers themselves do not directly decide to buy or sell Bitcoin. Instead, inflows and outflows reflect client activity.

According to commentary cited in the source material, a large share of IBIT’s investors are retail clients. The same commentary noted that historical ETF flow patterns have often coincided with local price tops or bottoms, as retail investors tend to react strongly to market movements.

While this perspective does not alter the underlying data, it highlights that ETF flow figures reflect investor positioning rather than discretionary decisions by asset managers. For readers evaluating crypto exposure through ETF products, this distinction is relevant when assessing how flows relate to broader market sentiment.

Bitcoin Price Declines from $80,000 to $73,000 During Outflow Period

The outflow streak coincided with a notable decline in Bitcoin’s price. During the period in question, BTC fell from approximately $80,000 to $73,000. At the time referenced in the source material, Bitcoin was trading at $73,807.36 following a slight rebound.

The timing of the withdrawals and the price drop overlapped. The source material indicates that the ETF withdrawals were associated with the price decline. The parallel movement between ETF flows and spot price suggests that capital exiting regulated investment products occurred alongside weakening market conditions.

Ethereum showed a similar pattern. Spot Ethereum ETFs experienced a three-week outflow streak, according to Farside Investors. During that time, ETH declined from $2,300 to $2,019.07. The mirrored movement between ETF flows and underlying asset prices affected both leading cryptocurrencies during the same broader market phase.

For market participants, simultaneous outflows in Bitcoin and Ethereum ETFs point to reduced investor appetite across major crypto assets rather than isolated weakness in a single product.

Rising Funding Rates Signal Strong Long Positioning Amid Price Weakness

At the same time as ETF outflows and falling spot prices, derivatives data reflected rising optimism among leveraged traders. The OI-weighted funding rate for Bitcoin increased and remained strongly positive, according to CoinGlass data cited in the source material.

A positive funding rate indicates that traders holding long positions are paying funding fees to short sellers. This structure reflects a market in which a significant share of participants expect prices to rise and are positioning accordingly.

The source material notes that this dynamic, combined with declining spot demand and ETF outflows, can create imbalance. When long positioning builds while prices continue to fall, the market structure becomes sensitive to further downward moves. In such situations, leveraged long positions may face liquidation pressure if support levels fail to hold.

The combination of ETF withdrawals, declining spot prices, and rising funding rates therefore reflects contrasting behavior between institutional-style ETF investors and derivatives traders.

Broader Implications for Crypto Market Participants

The ten-day outflow streak in spot Bitcoin ETFs represents a measurable shift in capital allocation within regulated crypto investment products. With $2.96 billion withdrawn over a short period, the scale of the movement stands out in absolute terms.

BlackRock’s IBIT absorbing the majority of withdrawals highlights how concentrated flows can influence aggregate data. At the same time, zero-flow readings at several other asset managers show that investor behavior was not uniform across all products.

Parallel outflows in spot Ethereum ETFs and falling prices in both BTC and ETH underline that the trend extended beyond a single asset. For users evaluating crypto exposure, whether through ETFs, spot holdings, or derivatives, the alignment of flows and price performance provides insight into current positioning across different market segments.

Our Assessment

Between 15 and 29 May, spot Bitcoin ETFs recorded their first ten consecutive days of net outflows, totaling $2.96 billion. BlackRock’s IBIT accounted for $2.11 billion of these withdrawals. During the same period, Bitcoin declined from $80,000 to around $73,000, while spot Ethereum ETFs also experienced sustained outflows and ETH fell from $2,300 to approximately $2,019. Rising positive funding rates indicate strong long positioning in derivatives markets despite weakening spot demand. Together, these data points show a period of capital withdrawal from ETF products coinciding with declining crypto asset prices and elevated leveraged long exposure.