Bitcoin ETFs See $347 Million Outflow as Price Drops 3.5%

US spot Bitcoin exchange-traded funds (ETFs) experienced their first joint outflow in over two weeks, with a net outflow of $347 million on May 29. This marked the end of a 10-trading-day inflow streak, which had been ongoing since May 13. The outflow was the largest single-day net outflow since March 11, when $396 million left the ETFs. This development came as Bitcoin's price sank by more than 3.5% on the day, falling from an intraday high of $108,850 to briefly dip below $105,000.

Several major Bitcoin ETFs saw significant outflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) had the largest net outflow for the day, shedding $166 million, followed by the Grayscale Bitcoin Trust (GBTC), which saw an outflow of $107.5 million. Other ETFs from Bitwise, Ark 21Shares, Invesco, Franklin Templeton, and VanEck also experienced outflows. Meanwhile, funds from CoinShares, WisdomTree, and Grayscale’s mini Bitcoin trust recorded no flows.

Despite the broader outflow trend, BlackRock’s iShares Bitcoin Trust (IBIT) bucked the trend with a net inflow of $125 million. This brought its consecutive trading day inflow streak to 34 days, with the product last seeing an outflow on April 9. BlackRock’s ETF has now seen just shy of $4 billion in inflows over the past two weeks, with the total inflow figure reaching $49 billion and assets under management for the fund exceeding $70 billion.

Over the past five weeks, more than $9 billion has entered spot BTC ETFs, while nearly $3 billion has outflowed from gold ETFs. This shift in investor sentiment suggests a rotation from traditional safe-haven assets like gold to Bitcoin, which is increasingly being viewed as a store of value and a hedge against inflation.

Spot Ether ETFs also bucked the outflow trend with a net inflow of $92 million on May 29. This brings the inflow streak to 10 consecutive trading days without an outflow, the last of which was on May 15. BlackRock’s iShares Ethereum Trust (ETHA) saw the lion’s share of those inflows, with just over $50 million bringing its total to $4.5 billion in inflows since the product launched in July 2024.

The contrasting trends in Bitcoin and Ether ETF flows highlight the dynamic nature of the cryptocurrency market. While some investors may be taking a more cautious approach to Bitcoin, others remain committed to both Bitcoin and Ether as long-term investments. The outlook for cryptocurrency ETFs will depend on a range of factors, including regulatory developments, market sentiment, and the broader economic environment.