The Great Bitcoin ETF Exodus
US-listed spot Bitcoin exchange-traded funds (ETFs) have posted their longest continuous outflow streak since launching in early 2024. According to data from Farside Investors, the funds shed another $223 million on Thursday, extending the record-breaking run to nine consecutive trading sessions of net withdrawals.
This latest streak surpassed the previous record of eight consecutive sessions of outflows registered in February 2025. Cumulatively, investors have pulled $2.84 billion from these investment vehicles during this nine-day window, though this remains slightly below the $3.2 billion lost during the February selloff.
Key Outflow Metrics at a Glance:
- Total 9-day cumulative outflows: $2.84 billion
- BlackRock’s IBIT share of losses: $2.04 billion
- Ethereum ETF outflow streak: 13 consecutive days ($694 million)
BlackRock’s IBIT Takes the Brunt of Selling Pressure
The world’s largest digital asset fund, iShares Bitcoin Trust (IBIT) managed by BlackRock, bore the majority of the liquidations. Between May 15 and Thursday, IBIT alone accounted for roughly $2.04 billion in cumulative outflows.
A massive single-day withdrawal of $527.8 million on May 27 marked IBIT’s second-largest daily outflow on record, coming in just behind the $528.3 million record set on January 30, 2025. Despite this heavy selling pressure, BlackRock remains the dominant player, holding approximately 792,000 BTC—representing roughly 62% of all US spot Bitcoin ETF assets.
“The institutional narrative is maturing. We are seeing a tactical rotation from dominant Bitcoin funds into specialized altcoin vehicles as investors seek higher beta plays during this consolidation phase.”
Capital Rotation: Altcoin ETFs Buck the Trend
While Bitcoin and Ethereum funds face sustained headwinds, newly launched altcoin products are successfully capturing investor attention. Spot HYPE (Hyperliquid) ETFs recorded steady inflows, pushing cumulative net additions past the $100 million mark. Similarly, spot XRP ETFs enjoyed steady gains, securing around $120 million in net inflows over the same period.
Conversely, spot Ether ETFs have struggled even more than their Bitcoin counterparts, logging 13 consecutive days of negative flows with cumulative losses reaching approximately $694 million.
Frequently Asked Questions (FAQ)
What is causing the record Bitcoin ETF outflows?
The outflows are primarily driven by a temporary cooling of institutional demand, profit-taking, and a strategic reallocation of capital into newer altcoin-based investment products.
Is BlackRock still the leading Bitcoin ETF provider?
Yes. Despite losing over $2 billion during this outflow streak, BlackRock’s IBIT still holds approximately 62% of all US spot Bitcoin ETF assets under management.
Are other crypto ETFs experiencing similar outflows?
While Ethereum ETFs have also faced a severe 13-day outflow streak, newer altcoin ETFs like HYPE and XRP have bucked the trend, attracting millions in fresh capital.
