Institutional appetite for digital asset investment vehicles has declined sharply, and this situation could derail cryptocurrency’s recent macro recovery.
According to Bitcoin data-tracking firm Ecoinometrics, a massive wave of capital flight from U.S. spot crypto exchange-traded funds (ETFs) has erased weeks of steady accumulation that had nearly offset drawdowns dating back to October.
Analyst Crypto Patel revealed how, during the week of May 18 to May 22, U.S. spot crypto ETFs suffered a staggering $1.364 billion in net outflows. Bitcoin vehicles bore the brunt of the liquidations, losing $1.26 billion as institutional players shed 16,371 BTC, roughly equivalent to 36 days of mined supply.
BlackRock led the institutional retreat, offloading 13,049 BTC, alongside significant liquidations from Fidelity and ARK 21Shares. Concurrently, spot Ethereum ETFs saw $215.99 million in net outflows, shedding over 102,000 ETH, with BlackRock again pacing the market-wide selling.
Despite this institutional exit, Bitcoin demonstrated short-term resilience in spot markets. CoinMarketCap data shows Bitcoin edged up 0.80% over the past 24 hours to trade at $77,275.30, acting as a relative safe haven amid capital rotation away from volatile altcoins. The minor gain was primarily driven by easing macro risk aversion following U.S. President Donald Trump’s announcement of a negotiated deal with Iran on May 24.
 
A series of leveraged short liquidations also supported the price. CoinMarketCap analysis indicates that if Bitcoin holds above its 50-day simple moving average near $76,940, it may retest the $78,500-$79,500 resistance.
Meanwhile, Ethereum underperformed the broader market, sinking 4.22% to $2,031.22. A confidence crisis has been exacerbated by high-profile insider and institutional selling, including exits by Harvard’s endowment and Bankless co-founder, David Hoffman.
This downward pressure coincides with an intensifying structural debate regarding the Ethereum Foundation’s shifting scope.
Insiders note that the foundation’s focus on user scaling has driven down network fees and reduced the token burn rate, prompting calls for a new entity dedicated strictly to supporting ETH as an asset. While technical roadmaps point to the current $1,400 to $2,000 range as a long-term accumulation zone, failing to defend the critical $2,000 floor risks a deeper drop toward $1,600.
Be the first to comment