Outflows from spot Bitcoin ETFs reached $4.4 billion in 13 days, marking the longest streak since launch

BlackRock’s IBIT takes largest share of withdrawals

On June 3, single-day outflows from spot Bitcoin ETFs amounted to $396.6 million. Over the latest 13-day streak, total withdrawals have been calculated at approximately $4.4 billion. According to Galaxy Research, in a broader 20-day window, funds have offloaded 73,080 BTC, worth around $5.42 billion. Over the past 7 days, 39,338 BTC exited ETFs, while the 10-day tally reached 42,941 BTC.

A significant share of these redemptions concentrated in BlackRock’s iShares Bitcoin Trust (IBIT). Data from Farside Investors shows that IBIT saw approximately $3.3 billion in outflows during the 13-day period, accounting for about 75% of the total withdrawals. During the same period, the Fidelity Wise Origin Bitcoin Fund recorded $456.6 million in outflows, while the Grayscale Bitcoin Trust ETF saw redemptions of $303.6 million.

The industry has taken note not just of the scale of these figures, but also their significance: IBIT, widely seen as a top vehicle for institutional accumulation since inception, has now reversed course, noticeably impacting general market sentiment.

Ki Young Ju, founder of CryptoQuant, described the ongoing sales by long-term Bitcoin holders and miners as part of a broad shift in which assets are transferring to traditional US financial institutions, investors, and ETFs.

Declining prices and demand drive ongoing outflows

Analysts point to a combination of weakening demand, falling prices, and shifting market positioning as the root causes of the outflows. The 13-day streak indicates the moves are likely connected to a longer-term decline in risk appetite, rather than a one-off portfolio adjustment.

The price of Bitcoin fell from $81,634 on May 15 to $65,315 as of June 16, a drop of around 20%. This retreat may have prompted institutions to trim positions, rebalance portfolios, or lock in earlier gains.

Julio Moreno, head of research at CryptoQuant, reported that overall Bitcoin demand dropped by roughly 501,000 BTC over the past month. This represents the steepest monthly decline since May 2022, echoing the market stress that followed the Terra Luna collapse.

Bloomberg ETF analyst Eric Balchunas emphasized that, despite recent redemptions, spot Bitcoin ETFs and institutions like Michael Saylor’s Strategy company remain net buyers in aggregate.

Liquidity and market sentiment under the microscope

Continued outflows from ETFs can lead issuers to sell spot Bitcoin, creating short-term selling pressure. In an environment of weak demand, this tightens liquidity and can make prices more vulnerable to negative developments.

However, observers note that ETF inflows and outflows typically respond to price movement, not the other way around. Current redemptions are therefore seen more as an effect of Bitcoin’s recent decline, rather than its primary cause. In the coming period, the industry will be watching whether ETF flows stabilize, alongside macroeconomic trends, price trajectory, and on-chain data.