1.3 Billion Dollars Egress from Bitcoin Spot ETFs…Why Are Institutions Leaving?

▲ Bitcoin (BTC) ETF ©CoinReaders

Over $1.3 billion has exited the Bitcoin (BTC) spot ETF market over four trading days, leading to analyses that institutional investors' risk aversion is intensifying.

According to the investment media outlet TradingNews on May 21 (local time), BlackRock's iShares Bitcoin Trust (IBIT) recorded a net outflow of $61.45 million on that day alone. The overall Bitcoin spot ETF market saw a net outflow of $70.47 million on the same day, with the cumulative net outflow over the past four trading days expanding to $1.34 billion. Fidelity's FBTC also saw $10.12 million exit, while only Morgan Stanley's MSBT recorded a net inflow of $1.11 million. The outlet stated, "ETF fund flows in 2026 are clearly decelerated compared to 2024 and 2025."

Bitcoin is currently trading around $77,500, showing a limited rebound after recently dipping to $76,000 during intraday trading. The outlet analyzed that $76,000 is a key short-term support level, and if this level breaks, $74,000 and $70,000 could become the next lines of defense. Conversely, if it recovers $80,000, there is a possibility of re-entering the $82,000-$85,000 range, it predicted.

The situation in the Ethereum (ETH) spot ETF market was similar. Ethereum spot ETFs continued their net outflow trend for 8 consecutive trading days, with $28.14 million exiting on that day alone. BlackRock's ETHA saw an outflow of $30.94 million, and Fidelity's FETH also experienced continued fund withdrawals. In contrast, in the XRP spot ETF market, Canary Capital's XRPC recorded a net inflow of $1.45 million, continuing its fund inflow for 5 consecutive trading days.

The market is also paying attention to the movement of funds into Hyperliquid (HYPE) spot ETFs. 21Shares' THYP and Bitwise's BHYP recorded a total net inflow of $25.46 million in one day. The outlet reported that the cumulative inflow since the launch of HYPE ETFs has exceeded $54 million over 7 trading days, showing a faster rate of fund inflow based on market capitalization compared to Bitcoin ETFs. Bloomberg ETF analyst Eric Balchunas commented on this, stating, "Strong organic institutional demand is emerging."

The outlet identified the hawkish stance of the US Federal Reserve (Fed) and the escalating Middle East risks as key factors behind the recent ETF fund outflows. It explained that the US 10-year Treasury yield is moving in the 4.6% range, and the strong dollar and international oil price volatility are also pressuring investor sentiment for risk assets. In particular, the US Personal Consumption Expenditures (PCE) price index to be released this week was cited as a key variable that will determine future ETF fund flows and Bitcoin's direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*