Record nine-day exodus from Bitcoin ETFs reaches $2.8B in withdrawals
Bitcoin exchange-traded funds experienced an unprecedented nine-session withdrawal period with $2.84 billion in outflows, eclipsing the eight-day withdrawal sequence from February 2025.
Exchange-traded funds tracking Bitcoin in the United States experienced an unprecedented withdrawal period, establishing a new record for consecutive outflows as demand from institutional investors for cryptocurrency exposure showed signs of declining.
On Thursday, spot Bitcoin ETFs witnessed additional net outflows totaling $223 million, extending the withdrawal period to a historic nine consecutive trading days since these investment vehicles debuted in 2024, based on information provided by Farside Investors.
This most recent withdrawal period eclipsed the prior record of eight consecutive sessions with negative flows that occurred in February 2025, although the combined total of approximately $2.84 billion in withdrawals falls short of the $3.2 billion that exited during the previous selloff episode.
The withdrawal pattern indicates that institutional appetite for gaining Bitcoin exposure via the ETF structure is diminishing, occurring at a time when significant corporate Bitcoin holders like Strategy are experiencing renewed challenges, despite the fact that certain newly introduced altcoin investment products such as Hyperliquid (HYPE) ETFs maintain their ability to draw investor capital.
IBIT from BlackRock experiences $2 billion in withdrawals
The iShares Bitcoin Trust (IBIT) from BlackRock, which stands as the largest spot Bitcoin ETF in the United States measured by total assets, was responsible for a substantial portion of the capital losses throughout the nine-day withdrawal period.
Between May 15 and Thursday, the investment vehicle experienced approximately $2.04 billion in total outflows. According to reporting from Cointelegraph, a single-day withdrawal of $527.8 million on May 27 represented IBIT's second-largest daily redemption ever recorded, falling just short of the $528.3 million record established on Jan. 30, 2025.
Notwithstanding the considerable redemption activity, the BlackRock Bitcoin ETF continues to maintain its position as the leading US spot Bitcoin fund measured by total assets under management. According to data from Wallet Pilot, IBIT maintained holdings of approximately 792,000 BTC at the conclusion of trading on Wednesday, accounting for roughly 62% of the total Bitcoin held across all US spot Bitcoin ETF products.
HYPE exchange-traded funds defy the wider market pullback
Even as spot Bitcoin ETFs endure ongoing withdrawal pressure, the recently introduced HYPE ETFs have maintained their ability to draw new investor capital.
These investment vehicles experienced consistent capital inflows from May 12 through Thursday, with total net inflows climbing beyond $100 million, based on data from SoSoValue.
Additional alternative cryptocurrency funds including spot XRP ETFs similarly experienced consistent positive flows throughout this timeframe, accumulating approximately $120 million in net capital additions from May 4 through Thursday.
This contrasting performance highlights an evolving pattern in cryptocurrency fund capital movements, with market participants withdrawing funds from Bitcoin and Ether ETF products while more recently launched investment vehicles connected to digital assets such as Hyperliquid's HYPE token continue experiencing positive inflows.
Spot Ether ETFs in the United States have similarly encountered ongoing redemption pressure, recording 13 straight trading days of negative flows spanning from May 11 through Thursday, accumulating combined losses totaling approximately $694 million.