The trend of withdrawals from US spot Bitcoin ETFs continues. According to SoSoValue data, these products have recorded net outflows for nine consecutive trading days, marking the longest consecutive outflow record since their listing in January 2024, with a cumulative outflow of approximately $2.8 billion over the nine trading days.
Approximately $1.3 billion flowed out this week.
Data shows that US spot Bitcoin ETFs saw outflows of approximately $1.3 billion this week alone, marking the third consecutive week of net outflows. On a monthly basis, May saw a cumulative outflow of approximately $2.3 billion, indicating that this round of withdrawals was not a single-day fluctuation but a continuous occurrence.
The capital outflow coincided with the recent decline in Bitcoin prices. The report noted that during this period, the price of Bitcoin fell from approximately $80,000 to $73,000. Meanwhile, AI-related stocks, semiconductors, and memory chip sectors continued to attract funds.
IBIT experiences its largest single-day outflow.
Signs of institutional selling are also emerging. BlackRock's iShares Bitcoin Trust (IBIT) recorded its largest single-day net outflow since its listing earlier this week. Reports indicate this shift was primarily related to a large dark pool transaction.
The specific reasons for this transaction are unclear, but judging from the scale of redemptions, some investors may be reducing their Bitcoin exposure and shifting funds to sectors with higher recent returns. For the ETF market, this means that institutional allocation demand has weakened.
Historically, it often approaches a stage low.
However, continued outflows do not always mean the decline will continue to extend. Glassnode's 14-day moving average data shows that ETF inflow lows have historically occurred late in market downturns and are close to Bitcoin's short-term lows.
Similar situations occurred during the pullback phases in early February and November. The former saw Bitcoin drop to around $60,000, while the latter occurred during a retracement after reaching an all-time high, when the price formed a local low around $85,000.
Currently, the simultaneous occurrence of continuous ETF outflows, Bitcoin's underperformance compared to the US tech sector, and large-scale institutional redemptions reflects a reallocation of market funds. If funds continue to flow into the AI and chip sectors, Bitcoin will remain under pressure in the short term.
