Bitcoin ETF Inflow Streak Ends After $347M Outflow Day

This latest outflow was the largest single-day outflow since March and ended a 10-day inflow streak. Fidelity’s FBTC and Grayscale’s GBTC led the outflows, while BlackRock’s IBIT stood out with a $125 million net inflow—its 34th straight day of gains. Meanwhile, spot Ether ETFs were able to stay resilient by drawing $92 million in inflows despite many holders being underwater due to ETH’s price decline. However, recent court decisions easing trade tensions revived sentiment. BlackRock has also been quietly increasing Bitcoin exposure via internal bond portfolios.

Bitcoin Price Drop Triggers ETF Outflows

US spot Bitcoin ETFs recorded their first collective outflow in over two weeks on May 29, snapping a ten-day streak of net inflows. This was also the largest single-day outflow since March. 

The total net outflow amounted to $347 million, according to data from Farside Investors. This reflected the shift in market sentiment after Bitcoin’s price dropped by more than 3.5% during the day. The sharp price decline saw BTC fall from an intraday high of $108,850 to briefly dip below $105,000.

Bitcoin ETF flow (Source: Farside Investors)

Among the ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) registered the largest outflow after losing $166 million. This was followed by the Grayscale Bitcoin Trust (GBTC), which shed $107.5 million. Other funds managed by Bitwise, Ark 21Shares, Invesco, Franklin Templeton, and VanEck also saw net outflows. However, funds like Grayscale’s mini Bitcoin trust, CoinShares, and WisdomTree experienced no flows.

The only ETF to defy the trend was BlackRock’s iShares Bitcoin Trust (IBIT), which attracted a net inflow of $125 million on the day. This was the fund’s 34th consecutive trading day of inflows, a streak that began after its last outflow on April 9. With nearly $4 billion in net inflows over the past two weeks alone, IBIT’s total inflows now stand at $49 billion, and its assets under management have surpassed $70 billion.

ETF Store President Nate Geraci pointed out the divergence between crypto and traditional asset flows, and explained that more than $9 billion has entered spot Bitcoin ETFs in the past five weeks while nearly $3 billion exited gold ETFs during the same period.

Meanwhile, spot Ether ETFs were more resilient during the Bitcoin pullback by posting a net inflow of $92 million on May 29. This extended their own inflow streak to ten consecutive trading days. BlackRock’s iShares Ethereum Trust (ETHA) led the charge with $50 million in net inflows, raising its total to $4.5 billion since its launch in July of 2024.

Ethereum ETF flow (Source: Farside Investors)

Ether ETF Investors Deep in the Red

Most investors in spot Ether ETFs launched by BlackRock and Fidelity are currently sitting on big unrealized losses. This is according to a new report from crypto analytics firm Glassnode. 

The report from May 29 found that the average investor in BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum ETF is now down around 21%, with cost bases of $3,300 and $3,500 respectively. Ether is currently trading at approximately $2,610, which is well below these entry points.

The decline in ETH’s price is partially attributed to macroeconomic pressures, particularly after US President Donald Trump signed an executive order imposing tariffs on imports from China, Canada, and Mexico. Ether last traded above $3,000 on Feb. 2, before entering a prolonged downtrend. The downturn intensified in April when the crypto hit a yearly low of $1,472 on April 9. This was the same day Trump’s global tariff package took effect.

Glassnode’s analysis mentioned that outflows from Ether ETFs tended to accelerate when the asset dropped below the average investor’s cost basis, particularly during price declines in August of 2024, January, and March of 2025. However, a recent recovery provided some relief. ETH rebounded more than 44% over the past month, driven in part by easing fears around the trade war. On May 28, a US federal court blocked most of Trump’s tariffs, fueling optimism and contributing to nine consecutive days of inflows into Ether ETFs.

ETH’s price action over the past month (Source: CoinMarketCap)

Since their US debut in July 2024, spot Ether ETFs have attracted close to $2.94 billion in inflows. At the time of their launch on July 23, Ether was trading around $3,536. Despite this capital influx, Glassnode noticed that the ETFs have had only a modest effect on Ethereum’s spot price. Initially, they accounted for just 1.5% of spot market trading volume. That figure rose to 2.5% in November 2024, coinciding with Trump’s re-election and a broader rally across the crypto market that briefly pushed ETH to $4,007 on Dec. 8. Since then, the ETFs’ market share slid back toward 1.5%.

BlackRock Quietly Boosts Bitcoin ETF Holdings

BlackRock has been steadily increasing its exposure to Bitcoin through internal portfolio allocations. According to recent filings with the US SEC, BlackRock’s Strategic Income Opportunities Portfolio held 2,123,592 shares of its own iShares Bitcoin Trust (IBIT) as of March 31, 2025. The position was valued at $99.4 million, which is a big increase from the 1,691,143 shares it held at the end of 2024. This move proved that Bitcoin is increasingly seen as a component of diversified return strategies, even in traditionally bond-heavy portfolios.

The iShares Bitcoin Trust was launched in January of 2024 after the SEC’s approval of 11 spot Bitcoin ETFs. It also very quickly became the dominant fund in its category. It currently manages over $70 billion in net assets, far outpacing its nearest competitor, Fidelity’s Wise Origin Bitcoin Fund (FBTC), which trails by $50 billion. The Strategic Income Opportunities Portfolio is primarily focused on bonds but includes a mandate for seeking higher returns through exposure to a broad array of markets, including digital assets like Bitcoin.

Institutional demand for Bitcoin ETFs are quite strong, with 2025 on track to mirror the explosive growth that was seen during the products’ first year. May has been particularly impressive, with spot Bitcoin ETFs attracting over $1.5 billion in net inflows in just two days. BlackRock’s IBIT played a central role in this trend by consistently recording sizable inflows since April 9. 

(Source: Bitwise)

Looking ahead, Bitwise Asset Management sees continued upside. In a recent report, its analysts projected that Bitcoin ETF inflows could reach $120 billion this year and potentially rise to $300 billion by 2026. Despite this robust growth, a major opportunity remains untapped. Bitwise shared that many traditional wealth management platforms and large wirehouses have not embraced Bitcoin ETFs just yet, which leaves a lot of room for even more institutional adoption in the coming years.