The sustained selling coincided with a big decline in Bitcoin’s price and resulted in ETF holdings falling by more than 51,700 BTC over the past month. BlackRock’s IBIT accounted for the majority of the withdrawals, and analysts are divided on the cause of the downturn. Bitcoin ETFs Shed Billions US-listed spot Bitcoin exchange-traded funds (ETFs) are experiencing their longest streak of investor withdrawals since their launch. On Wednesday, spot Bitcoin ETFs recorded another $396.6 million in net outflows , extending the current streak to 13 consecutive trading days and pushing total withdrawals during this period to approximately $4.4 billion. Bitcoin ETF flows (Source: Farside Investors) The ongoing sell-off surpassed the previous record of eight consecutive days of outflows that was seen in February of 2025, when around $3.2 billion exited the funds. The persistent withdrawals coincided with a decline in Bitcoin’s price. Since the outflow trend began on May 15, Bitcoin has fallen by close to 20%, dropping to trade near $62,400. BTC’s price action over the past month(Source: CoinCodex) Among the ETF issuers, BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the majority of redemptions. The fund has seen approximately $3.3 billion leave its products during the 13-day period, representing about three-quarters of all Bitcoin ETF outflows. Fidelity’s Wise Origin Bitcoin Fund followed with roughly $456.6 million in withdrawals, while Grayscale’s Bitcoin Trust ETF recorded around $303.6 million in outflows. The impact of these withdrawals has been intense. Data shows that US spot Bitcoin ETFs collectively lost more than 51,700 BTC over the past month, which represents nearly $5 billion worth of Bitcoin. Despite the recent selling pressure, BlackRock is still the largest holder among ETF providers with close to 786,800 BTC under management, followed by Fidelity and Grayscale. Not all analysts believe that institutional investors are responsible for the downturn. Bloomberg ETF analyst Eric Balchunas argued that major institutional buyers, including Bitcoin ETFs and Michael Saylor’s Strategy, have generally continued accumulating Bitcoin over the longer term. Instead, he suggested that early Bitcoin holders may be responsible for much of the recent selling activity. Other analysts believe derivatives markets and leveraged trading positions may be amplifying Bitcoin’s price movements. They point out that on-chain selling activity has remained relatively limited, which indicates that liquidations and futures market dynamics could be playing a larger role in the recent volatility. CryptoQuant founder Ki Young Ju also believes that a broader shift is taking place in the Bitcoin ecosystem. He suggested that early adopters, miners, and long-term holders are transferring Bitcoin ownership to institutional investors, ETFs, and traditional financial market participants. While this transition may create short-term selling pressure, Ju believes it could ultimately strengthen Bitcoin’s long-term demand profile by placing more supply into the hands of investors with longer investment horizons.
