Bitcoin ETFs lose $1.2B weekly as risk appetite fades
US spot Bitcoin exchange-traded funds recorded $1.2billion in withdrawals over five trading days, marking one of their sharpest weekly outflows since launch.
The latest decline placed the week among the three worst periods on record for US-listed spot Bitcoin ETFs.
The withdrawals were closely watched by crypto traders because ETF flows are often treated as a gauge of institutional demand for Bitcoin.
Galaxy Digital’s head of firmwide research, Alex Thorn, said the latest wave of withdrawals ranked as the third most negative week for the products.
The pressure started on Monday, May 18, when investors pulled about $647million from US spot Bitcoin ETFs in a single session.
The heavy Monday outflow set the tone for the rest of the week as risk sentiment remained weak across crypto-linked investment products.
Tuesday brought another round of selling, with the funds posting about $331.05million in additional outflows.
The pace of withdrawals slowed by Wednesday, when the products lost around $70.47million in net flows.
However, the improvement did not last long as the funds continued to face redemptions through the end of the week.
Thursday saw a further $100.82million leave US spot Bitcoin ETFs, adding to the pressure already seen earlier in the week.
Friday then closed the trading week with another $105.19million in withdrawals from the widely tracked funds.
The five-day run highlighted how quickly institutional flows can shift when market conditions turn less favourable for risk assets.
Analysts linked the weaker appetite to broader market turbulence, including falling expectations for US interest rate cuts.
Lower rate cut expectations can weigh on riskier assets because investors may become less willing to hold volatile positions.
Bitcoin ETFs remain a major part of the crypto investment market despite the severe weekly outflow.
Total net assets across US spot Bitcoin ETFs were still reported at about $98.87billion after the withdrawals.
The products also continued to hold a significant share of Bitcoin’s wider market exposure.
US spot Bitcoin ETFs reportedly controlled around 6.49% of Bitcoin’s total global market capitalisation.
The figures suggest that the latest outflows were painful but did not erase the large institutional footprint built through these products.
Traders may now watch whether ETF withdrawals continue or whether the latest pullback becomes a temporary reaction to market uncertainty.
A return to inflows could support confidence in Bitcoin’s institutional demand story.
Continued outflows, however, may signal that large investors remain cautious while macroeconomic pressure weighs on crypto markets.
At the time of reporting, Bitcoin price was $77,057.48.