Bitcoin ETF: More Than Half Exits 'BlackRock'...BTC Rebound Theory 'Stumbles'

▲ Bitcoin (BTC)/AI Generated Image

As BlackRock clients continue to sell their Bitcoin (BTC) spot ETFs, the expectation of a Bitcoin rebound has hit the cold wall of institutional fund outflows.

According to U.Today on May 27 (local time), 2,538 BTC moved from BlackRock's IBIT to a Coinbase Prime custody address. This volume, worth $192.53 million, was confirmed before the start of trading on May 27. U.Today interpreted this as a sign that confidence in further Bitcoin price increases is weakening among BlackRock clients.

This selling volume accounts for more than 57% of the total net outflow of $333.71 million from the US Bitcoin spot ETF market on the previous trading day. U.Today reported that while ETF fund flows showed inflows in early May, an uninterrupted liquidation trend continued for several weeks thereafter, pushing total outflows past billions of dollars. During the same period, Bitcoin's price corrected from a high of $81,500 to $75,500.

BlackRock clients' pessimism spread to other ETFs as well. In the past 24 hours, Fidelity's FBTC lost $57.74 million, and Grayscale's GBTC saw an outflow of $41.21 million. U.Today analyzed that large investors are cashing out, citing the fact that daily trading volume reached $4.4 billion even amidst the downtrend.

The deteriorating investment sentiment for Bitcoin ETFs is underpinned by US macroeconomic pressures. U.Today reported that with a resurgence in inflation and the Middle East crisis, the US 30-year Treasury yield remains at 5.20%. As the US Federal Reserve (Fed) does not appear to be planning interest rate cuts in 2026, institutional investors are continuing defensive moves to reduce risk and lock in profits in the volatile cryptocurrency market.

However, the 13 US Bitcoin ETFs still hold a total of $98.4 billion in assets under management (AUM), which accounts for 6.45% of Bitcoin's total market capitalization. Among these, IBIT's AUM is $60.75 billion. The cumulative net inflow of $56.75 billion acts as a buffer, indicating that major investors are still significantly profitable compared to their past purchase prices. U.Today assessed that institutional funds are likely to maintain a defensive stance until US Treasury yields decrease.

*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.*