Even BlackRock Shaken... Bitcoin Spot ETF Sees $2.2 Billion Outflow in 2 Weeks

▲ BlackRock Bitcoin/ChatGPT generated image ©

In the Bitcoin (BTC) spot ETF market, $2.26 billion has flowed out in just two weeks, rapidly increasing concerns about slowing institutional demand. In particular, with over $1 billion flowing out of BlackRock's IBIT alone, the market is even discussing the possibility of the $75,000 support level collapsing.

According to investment media TradingNews on May 25 (local time), BlackRock's iShares Bitcoin Trust (IBIT) closed at $42.96 on the 23rd, facing large-scale redemption pressure for two consecutive weeks. Last week alone saw an outflow of $1.01 billion, and the entire U.S. Bitcoin spot ETF market experienced a total outflow of $2.26 billion during the same period. Notably, the net outflow of $1.26 billion recorded during the week of May 18-22 was the fourth largest weekly outflow in history.

The market shock was also evident in the annual cumulative fund flows. The cumulative net inflow for U.S. Bitcoin spot ETFs in 2026 has sharply decreased to approximately $536 million. This is a significant change from the strong buying sentiment seen earlier this year. Compared to IBIT's total cumulative inflow of $25 billion last year, its net inflow this year stands at only $2.7 billion. The media diagnosed that the upward momentum for Bitcoin is weakening as institutional funds rapidly withdraw from risk assets across the board.

Institutional investors' moves to reduce positions have also been confirmed. Jane Street cut its Bitcoin ETF holdings by approximately 70% in the first quarter, and Goldman Sachs also reduced its related positions by 10%. Additionally, with U.S. Treasury yields rising to their highest level since 2007, there's an analysis that the investment appeal of Bitcoin, a non-interest-bearing asset, has weakened. In contrast, Morgan Stanley's MSBT ETF, using an ultra-low fee strategy of 0.14%, attracted $264 million in about seven weeks since its launch, aiming to expand its market share.

However, on-chain metrics are not as pessimistic as the ETF outflows. Bitcoin holdings on exchanges are currently at 2.16 million BTC, a five-year low. This suggests that ETF redemptions may not directly lead to large-scale spot sales, and some institutions might be moving funds to their self-custody wallets. Furthermore, the U.S. Bitcoin spot ETF market has maintained a cumulative net inflow of $58.72 billion since its launch in 2024, and Bank of America reportedly continues to hold approximately 972,590 shares of IBIT.

The media analyzed that Bitcoin is currently at a critical turning point between $75,000 and $80,000. If it breaks above $80,000, there's a possibility of re-ascending to $85,000-$90,000, but conversely, if $75,000 collapses, additional downward pressure could increase to the $70,000-$72,000 range. Particularly, whether ETF fund flows reverse, U.S. Treasury yields, and geopolitical variables in the Middle East were cited as key factors determining the future market direction.

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