- Bitcoin ETFs saw a sharp reversal on May 29 with $347 million in outflows, ending a 10-day inflow streak amid a 3.5% price drop.
- Despite the sell-off, BlackRock’s IBIT remained strong with $125 million in inflows, while Ethereum ETFs posted a resilient $92 million gain.
A Sharp Reversal Hits Bitcoin ETF
After a bullish 10-day run, U.S. spot BTC ETFs hit a wall on May 29 with a staggering $347 million in net outflows, marking their first collective downturn in over two weeks. This sudden reversal came alongside a sharp 3.5% decline in Bitcoin’s price, which plunged from an intraday high of $108,850 to briefly dipping below $105,000.
The outflow was the largest single-day withdrawal since March, sending a clear signal that investor sentiment has shifted—at least temporarily.
Fidelity and Grayscale Lead the Exit, BlackRock Defies the Trend
Among the worst hit, Fidelity’s Wise Origin Bitcoin Fund (FBTC) suffered a $166 million exodus, followed closely by Grayscale’s Bitcoin Trust (GBTC) with $107.5 million in outflows. Other major issuers like Bitwise, Ark 21Shares, and Invesco also saw negative flows.
Yet in stark contrast, BlackRock’s iShares Bitcoin Trust (IBIT) stood as a beacon of resilience, attracting $125 million in net inflows—its 34th consecutive day of gains. Since April 9, IBIT has pulled in nearly $4 billion, and now boasts over $70 billion in assets under management, setting itself apart from the broader ETF pack.
Ethereum ETFs Hold Strong Amid Bitcoin Pullback
While Bitcoin ETFs struggled, spot Ethereum ETFs posted $92 million in inflows, proving surprisingly robust. BlackRock’s iShares Ethereum Trust (ETHA) led the way with $50 million in net inflows, pushing its total above $4.5 billion since launching in July 2024.
This divergence hints at growing investor confidence in Ethereum, especially in light of recent favorable court decisions easing crypto-related trade restrictions.
Market Volatility Meets Institutional Optimism
Despite the sharp ETF outflows, the continued inflows into BlackRock’s funds and the strength in Ethereum ETFs suggest institutional investors aren’t abandoning crypto—they’re just getting more selective.
With more than $9 billion entering Bitcoin ETFs over the past five weeks, compared to $3 billion leaving gold ETFs, the broader trend may still favor digital assets. The question now is whether this pullback is a pause—or the start of something deeper.
