Caroline Bishop
May 29, 2026 14:26
Bitcoin ETFs saw $2.8B in outflows over nine days, led by BlackRock’s IBIT with $2B withdrawn. Institutional demand weakens as BTC drops to $72,745.
U.S.-listed spot Bitcoin ETFs have posted a record nine-day streak of outflows, with $2.8 billion drained through May 29, 2026, according to data from Farside Investors. This marks the longest withdrawal streak since these funds launched in January 2024, underscoring cooling institutional demand for Bitcoin exposure.
BlackRock’s iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF by assets, accounted for $2 billion of the total outflows during this period. On May 27 alone, IBIT saw $527.8 million in net redemptions—the second-largest single-day outflow in its history, narrowly trailing the $528.3 million record set in January 2025. IBIT currently holds 792,000 BTC, or roughly 62% of all U.S. spot Bitcoin ETF assets, according to Wallet Pilot.
The selloff coincides with Bitcoin’s price decline from $82,000 earlier in May to $72,745 as of May 29, down 0.82% over the past 24 hours. Analysts suggest the ETF outflows are tied to broader risk-off sentiment, with investors rotating out of Bitcoin amidst macroeconomic uncertainty and profit-taking following Bitcoin’s rally earlier in the year. Similar patterns were observed in 2024, when ETF flows responded to market cycles and macro factors like interest rate expectations.
Altcoin ETFs Attract Inflows Amid Bitcoin Weakness
While Bitcoin ETFs faced sustained redemptions, altcoin-focused ETFs like Hyperliquid (HYPE) products have attracted fresh capital. HYPE ETFs saw cumulative inflows exceeding $100 million between May 12 and May 29, according to SoSoValue. Spot XRP ETFs also recorded $120 million in net additions during the same period.
This divergence highlights a shift in institutional interest, with investors exploring opportunities in newer altcoin products. U.S. spot Ether ETFs, however, mirrored Bitcoin’s struggles, logging 13 consecutive days of outflows totaling $694 million through May 29.
Market Implications
Historically, prolonged ETF outflows have coincided with local price bottoms for Bitcoin. Analysts note that such selling often amplifies existing market trends rather than initiating them. If this pattern holds, Bitcoin’s current weakness could set the stage for a recovery once the outflow cycle stabilizes.
Nevertheless, the record streak underscores growing investor caution in the face of macro volatility. With Bitcoin ETFs serving as a key gateway for institutional capital, their performance will remain a critical barometer for broader market sentiment.
Traders will be closely watching ETF flow data and Bitcoin’s price action in the coming weeks to assess whether this outflow streak marks a temporary pullback or signals deeper structural shifts in institutional demand.
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