Funds Dedicated to Bitcoin Experience Outflow of $358 Million - The End to a 10-Day Series of Inflows
US Bitcoin ETFs Witness Massive Reversal in Inflows, Ethereum ETFs Continue to Gain Investor Interest
In a striking turnaround, U.S. spot Bitcoin ETFs experienced significant net outflows of $346.8 million following a 10-day streak of $4.26 billion inflows, as per Farside Investors. This represents the largest single-day withdrawal since March 11th, signaling renewed caution among investors.
Among the affected funds, Fidelity's Wise Origin Bitcoin Fund led the exodus with $166 million withdrawn, followed by Grayscale's GBTC with $107.5 million in net redemptions. Several other funds, including those from Bitwise, Ark 21Shares, Invesco, Franklin Templeton, and VanEck, also experienced capital outflows.
In contrast to the Bitcoin ETF trend, spot Ethereum ETFs continued to register investor interest, recording $92 million in net inflows on May 29th alone. BlackRock's iShares Ethereum Trust recorded over $50 million in fresh inflows, raising its total to $4.5 billion since its launch in July 2024.
This discrepancy in flow trends coincides with recent figures, as over the past five weeks, Bitcoin ETFs have attracted more than $9 billion, while gold ETFs have experienced nearly $3 billion in outflows.
BlackRock's iShares Bitcoin Trust (IBIT) was the exception to the broader market movement, attracting $125 million in net inflows, extending its impressive 34-day streak of daily inflows. IBIT's total inflow now nears $49 billion, and its assets under management have surpassed $70 billion.
The recent market correction, which has seen Bitcoin's price drop from $111K to around $105,615, may be contributing to the shift in ETF momentum. As the market cycle increasingly responds to growing institutional involvement, particularly following the U.S. spot Bitcoin ETF approval in early 2024, investor sentiment and market dynamics are experiencing a reshape.
Reflecting on this trend, CryptoQuant founder Ji Young Ju acknowledged a previously made bear market prediction in early 2025 that proved inaccurate, as Bitcoin reached a new all-time high just two months later. Young Ju commented, "It feels like it's time to throw out that cycle theory. New liquidity sources and volume are becoming more uncertain, signaling a transition as the Bitcoin market merges with TradFi."
(Enrichment Data Integration)Approved by the U.S. Securities and Exchange Commission (SEC) in January 2024, Bitcoin ETFs in the U.S. have attracted over $52 billion in assets under management (AUM) as of May 2025, with strong institutional support and greater legitimacy in traditional finance. In comparison, Ethereum ETFs, approved four months later, have secured around $7 billion in AUM as of May 2025. While Bitcoin ETFs continue to lead in terms of AUM and institutional support, Ethereum ETFs are gaining traction, particularly in recent months, driven by Ethereum's utility and growth in DeFi.
- Despite the massive reversal in inflows for US Bitcoin ETFs, Ethereum ETFs have continued to attract investor interest, with BlackRock's iShares Ethereum Trust recording over $50 million in fresh inflows on a single day.
- The shift in ETF momentum seems to be influenced by the recent market correction, as Bitcoin's price dropped from $111K to around $105,615.
- In contrast to Bitcoin ETFs, Ethereum ETFs are gaining traction, particularly in terms of AUM and institutional support, due to Ethereum's utility and growth in DeFi.
- While Bitcoin ETFs currently lead in terms of AUM and institutional support, the ongoing growth of Ethereum ETFs suggests a potential shift in the preference of investors in the crypto market.
(Release Statement: After the recent market correction causing Bitcoin's price drop and the subsequent inflow reversal in US Bitcoin ETFs, there's a shift in ETF momentum towards Ethereum ETFs, indicating a potential preference change among investors in the crypto market due to Ethereum's utility and DeFi growth.)
