BlackRock's Robert Mitchnick says rising US debt, growing deficits, and fears of money printing could drive Bitcoin's next rally. | Credit: CCN.com
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Spot Bitcoin ETFs recorded $1.42 billion in net outflows during the week of May 25-29, marking the third-largest weekly withdrawal on record.
BlackRock’s IBIT led the selloff, accounting for approximately $966 million in outflows, while Grayscale’s GBTC saw an additional $175 million withdrawn.
The latest figures represent the third consecutive week of ETF outflows exceeding $1 billion, bringing total withdrawals over the past three weeks to more than $3.5 billion.
Spot Bitcoin exchange-traded funds (ETFs) recorded one of their largest weekly withdrawals on record, with investors pulling approximately $1.42 billion from the products between May 25 and May 29, according to data from SoSoValue.
The figure marks the third-largest weekly outflow since spot Bitcoin ETFs launched in the United States and extends a broader trend of institutional selling that has weighed on the cryptocurrency market in recent weeks.
The outflows come amid rising Treasury yields, geopolitical uncertainty, and growing competition for investor capital from high-performing sectors such as artificial intelligence and semiconductor stocks.
While Bitcoin ETFs remain one of the most successful ETF categories ever launched, the recent wave of redemptions suggests that investors are becoming increasingly cautious toward risk assets.
Despite the withdrawals, spot Bitcoin ETFs still hold a combined net asset value of $94.17 billion, while cumulative historical net inflows remain positive at $55.66 billion.
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BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF by assets under management, accounted for the majority of last week’s withdrawals.
According to ChainCatcher, IBIT recorded net outflows of approximately $966 million during the week, including a single-day redemption of $448 million.
The Grayscale Bitcoin Trust (GBTC) followed with net outflows of $175 million, continuing the trend of investor withdrawals from some of the sector’s largest funds.
Bitcoin spot ETFs see $1.42 B in outflows. | Credit: ChainCatcher
Across all spot Bitcoin ETFs, investors effectively removed exposure equivalent to roughly 19,021 BTC.
Analysts note that this amount represents approximately 42 days’ worth of newly mined Bitcoin entering the market in a single week.
The latest withdrawals mark the third consecutive week of net outflows exceeding $1 billion, bringing total outflows over the past three weeks to more than $3.5 billion.
The trend has raised concerns that institutional investors are reducing their crypto exposure amid less favorable macroeconomic conditions.
Nevertheless, Bitcoin’s ability to absorb such significant selling pressure without a dramatic collapse has been viewed by some market participants as a sign of underlying demand.
Rising Yields and AI Stocks Draw Capital Away From Crypto
Market analysts point to a combination of macroeconomic and sector-specific factors behind the recent exodus from Bitcoin ETFs.
One of the primary drivers has been the rise in US Treasury yields, which makes government bonds more attractive relative to volatile assets such as cryptocurrencies.
At the same time, geopolitical tensions have increased uncertainty across global markets, prompting investors to seek safer investments.
US Coinbase Premium Index has turned negative. | Credit: CryptoQuant
Another emerging factor is the continued rally in artificial intelligence and semiconductor stocks. According to CryptoQuant data, both the US Coinbase Premium Index and South Korea’s Bitcoin Premium Index have turned negative, suggesting weakening demand in two of Bitcoin’s most important retail markets.
The Korea Premium Index recently fell to its lowest level since December 2024, while Coinbase’s premium dropped below zero, indicating softer buying pressure among US investors.
Capital is rotating out of digital assets and into AI-related equities, which have significantly outperformed many cryptocurrency investments in recent months.
The trend has created additional headwinds for Bitcoin at a time when ETF flows have become a major driver of market sentiment.
Bitcoin Faces Key Test as ETF Outflows Continue
The sustained outflows have renewed concerns about Bitcoin’s near-term price outlook. Bitcoin recently slipped below the $73,000 level and remains under pressure after three consecutive weeks of losses.
Technical analysts are closely watching support levels around $72,500 and $70,500. A break below these zones could expose Bitcoin to further downside toward the $65,000 region.
Supporters of Bitcoin also point to the fact that despite the sale of nearly 19,000 BTC by ETF investors, the market avoided a sharp collapse.
That resilience suggests buyers remain willing to absorb substantial selling pressure.
For now, ETF flows remain one of the most closely watched indicators in the cryptocurrency market.
Whether the recent outflows represent a temporary risk-off phase or the start of a broader institutional retreat will likely become clearer in the weeks ahead as investors respond to changing macroeconomic conditions and evolving market opportunities.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
