TLDR
- U.S. spot Bitcoin ETFs recorded $1.72 billion in weekly net outflows, the largest since February 2025.
- BlackRock’s IBIT led withdrawals with $1.34 billion in outflows during the same period.
- Strong U.S. jobs data reduced rate cut expectations and pushed Treasury yields higher.
- Rising yields increased the appeal of bonds over non-yielding bitcoin.
- Asian equity markets declined as risk sentiment weakened across global markets.
U.S. spot Bitcoin ETFs posted their heaviest weekly withdrawals since February 2025, according to fresh market data. The products lost $1.72 billion in net flows last week, reversing prior stability and extending May’s negative trend. The pullback followed strong U.S. labor data and rising Treasury yields, while bitcoin later rebounded toward $64,000.
Bitcoin ETFs Face $1.72B Weekly Withdrawals
Data from SoSoValue shows Bitcoin ETFs recorded $1.72 billion in net outflows last week. The funds reported daily withdrawals throughout the week, except Thursday, when they added $3 million. This marked the largest weekly net outflow since February 2025.
BlackRock’s IBIT led the redemptions during the period. The fund posted $1.34 billion in net outflows, its largest weekly withdrawal since launching in January 2024. The latest data extends May’s trend, when spot Bitcoin ETFs logged $2.43 billion in monthly net outflows.
Macroeconomic Data Pressures Crypto Markets
Andri Fauzan Adziima of Bitrue Research Institute linked the outflows to macroeconomic developments. He told The Block that strong May 2026 non-farm payroll data reduced expectations for near-term Federal Reserve rate cuts. “The strong May 2026 report reinforced a resilient labor market, crushed near-term Fed rate-cut odds, and drove Treasury yields higher,” Adziima said.
He added that higher yields increased the appeal of bonds over non-yielding bitcoin. At the same time, geopolitical tensions contributed to a broad risk-off shift across markets. Equity markets in Asia also declined, reflecting weaker sentiment.
South Korea’s Kospi index fell 8.29% at Monday’s close. Japan’s Nikkei 225 dropped 3.85%, while Taiwan’s TAIEX declined 3.48%. The declines followed earlier rallies tied to technology and AI-related stocks.
Adziima said he expects flows to remain pressured in early June. “I expect flows to stay pressured early June but stabilize or turn modestly positive mid-to-late month,” he said. He cited potential seasonal patterns and macro relief as factors that could support stabilization.
Bitcoin recovered part of last week’s losses over the weekend. The cryptocurrency briefly touched $64,000 before trading near $63,000. Analysts described the move as an oversold relief rally after bitcoin fell 15% during the prior sell-off.
The price action followed sharp liquidations and ETF redemptions earlier in the week. Traders reacted to higher yields and shifting rate expectations. As of the latest data, bitcoin traded around $63,000, holding above weekend lows.
Be the first to comment