Spot Bitcoin ETFs See $1B Weekly Outflows, Six-Week Run Ends

Spot Bitcoin exchange-traded funds (ETFs) recorded $1 billion in net outflows last week, snapping a six-week streak of consistent inflows that had brought in $3.4 billion. According to data from SoSoValue, the sharp reversal came amid heightened volatility, weak macro sentiment, and a rotation of capital toward AI-related equities.

The week’s selloff unfolded unevenly. Modest inflows of $27.29 million on Monday offered a positive start, but sentiment turned decisively bearish by Tuesday, which saw $233.25 million in outflows. Wednesday marked the most significant single-day withdrawal, with $635.23 million exiting the funds, the largest one-day drop since January 29, 2026. A brief recovery on Thursday ($131.31 million inflows) was erased on Friday, as $290.42 million more was pulled. By week’s end, spot Bitcoin ETF assets stood at $104.29 billion.

This marks a stark contrast to the prior weeks. April 2026 had been particularly strong, with $1.97 billion in inflows, while early May added $1.68 billion before the reversal. The week of April 17 alone saw $996.38 million in inflows, reflecting robust institutional demand at the time. However, last week’s outflows underscore a shift in sentiment as investors grapple with macroeconomic uncertainties and market rotation.

Institutional Capital Shifts Toward AI Stocks

Analysts at Bitunix highlighted aggressive capital rotation into the AI growth narrative as a key driver of Bitcoin ETF outflows. Major AI-linked stocks like NVIDIA, Apple, and Google hit new all-time highs last week, while Cerebras, an AI-focused chipmaker, surged over 70% on its IPO debut. With AI emerging as a dominant investment theme, some funds appear to have shifted away from crypto assets toward perceived growth opportunities in tech.

Additionally, regulatory developments played a role. The U.S. Senate Banking Committee advanced the CLARITY Act, a comprehensive crypto market structure bill, which briefly buoyed Bitcoin prices midweek. BTC climbed back toward $82,000 before retreating to $78,367 as of May 16, down 2.89% over the past 24 hours. Key levels to watch now include $80,000 as a psychological support and $82,400-$82,600 as areas of short liquidity, according to Bitunix.

Broader Implications for Bitcoin ETFs

The $1 billion in weekly outflows is a reminder of how sensitive institutional flows into Bitcoin ETFs can be to macro conditions. Hotter-than-expected April inflation data (CPI at 3.8%, PPI at 6%) and the confirmation of hawkish Fed Chair Kevin Warsh have raised the odds of additional rate hikes, pressuring risk assets, including crypto.

Despite the latest outflows, cumulative net inflows into U.S. spot Bitcoin ETFs since their January 2024 launch remain substantial at $58 billion. This reinforces their status as a critical gateway for institutional Bitcoin exposure. However, the recent volatility is a cautionary signal for traders relying on ETFs as proxies for stable BTC inflows.

Spot Ether ETFs Also Under Pressure

Bitcoin wasn’t the only asset hit by outflows. Spot Ether ETFs saw consistent redemptions across all five trading days, with $254.46 million pulled in total. Tuesday was particularly weak, with $130.62 million in outflows, dragging total net assets for Ether ETFs to $12.93 billion.

As institutional investors weigh their options, rising volatility in crypto markets may continue to create opportunities and risks for traders. The interplay between macro trends, AI momentum, and regulatory clarity will likely shape fund flows in the coming weeks.

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