Bitcoin ETFs Record First Major Outflow in Two Weeks While BlackRock Maintains Inflow Streak
US spot Bitcoin exchange-traded funds experienced their first joint outflow day in over two weeks on May 29, with 11 Bitcoin ETFs recording a combined net outflow of $347 million, according to Cointelegraph. The outflows ended a 10-trading-day inflow streak that last occurred on May 13 and represented the largest single day of net outflows since March 11, when $396 million left the ETFs. BlackRock's iShares Bitcoin Trust bucked this trend with a net inflow of $125 million, extending its consecutive trading day inflow streak to 34 days.
ETF Performance Breakdown Shows Mixed Results
The Fidelity Wise Origin Bitcoin Fund recorded the largest outflow at $166 million, followed by Grayscale Bitcoin Trust with $107.5 million in withdrawals. ETF.com reported that Bitwise, Ark 21Shares, Invesco, Franklin Templeton and VanEck's ETFs also experienced outflows, while funds from CoinShares, WisdomTree, and Grayscale's mini Bitcoin trust recorded no flows.
BlackRock's resilience comes as the fund has accumulated nearly $4 billion in inflows over the past two weeks, bringing total inflows to $49 billion with assets under management exceeding $70 billion. CoinDesk previously documented the fund's ability to recover from significant outflows, including a record $332.6 million single-day withdrawal in January 2025.
The outflows coincided with Bitcoin's price declining more than 3.5%, falling from an intraday high of $108,850 to briefly dip below $105,000. Bloomberg data shows that despite recent volatility, institutional confidence in Bitcoin ETFs remains strong, with analysts projecting continued growth.
Institutional Investment Patterns Signal Market Maturation
Market analysis reveals changing investor behavior patterns as institutions adapt to cryptocurrency volatility. DL News reports that analysts expect Bitcoin ETF inflows to exceed $70 billion in 2025, driven by accelerated institutional adoption following the Republican election victory in November.
ETF Store President Nate Geraci observed that over the past five weeks, more than $9 billion entered spot Bitcoin ETFs while nearly $3 billion outflowed from gold ETFs. This capital rotation suggests institutions view Bitcoin as an alternative store of value during periods of economic uncertainty.
Investopedia analysis indicates that despite short-term outflows, the overall trajectory remains positive. Some analysts predict Bitcoin could reach $180,000 or higher in 2025, with potential nation state adoption serving as a key catalyst.
Traditional Finance Integration Accelerates
The cryptocurrency market's integration with traditional finance continues expanding as major financial institutions adjust their strategies. CNBC reports that asset management firms are developing new products combining cryptocurrency exposure with derivatives, including structured protection ETFs aimed at capturing Bitcoin's upside with downside protection.
Meanwhile, spot Ether ETFs recorded $92 million in net inflows on May 29, maintaining a 10-consecutive trading day streak without outflows. BlackRock's iShares Ethereum Trust received over $50 million, bringing total inflows to $4.5 billion since launching in July 2024.
Recent SEC clarification that staking on proof-of-stake blockchains does not constitute securities activity removes another regulatory barrier for Ethereum ETF development. This regulatory clarity supports expectations for expanded cryptocurrency ETF offerings throughout 2025.
Broader Market Implications and Future Outlook
The cryptocurrency market's maturation reflects broader institutional adoption trends reshaping digital asset investment. Coinbase research indicates that crypto markets are positioned for transformative growth in 2025, with increasing institutional adoption and expanding use cases driving momentum.
Government policy changes under the Trump administration are expected to provide additional support for cryptocurrency integration. Cherry Bekaert reports that the proposed Strategic Bitcoin Reserve positions Bitcoin as a national reserve asset, potentially accelerating mainstream adoption.
Current data shows approximately 28% of American adults own cryptocurrencies, representing about 65 million people. Security.org research indicates ownership has nearly doubled since 2021, with 14% of non-owners planning to enter the market in 2025.
Despite recent outflows, institutional investment infrastructure continues expanding. The development of regulated custody solutions, enhanced trading platforms, and clearer regulatory frameworks addresses previous barriers to institutional participation. These developments position the cryptocurrency market for continued integration with traditional financial systems throughout 2025.
Related Reading on BTC Peers
Explore the Global Bitcoin Policy Index (GBPI) to understand how different countries approach Bitcoin regulation and policy. This comprehensive analysis examines regulatory frameworks worldwide, helping readers understand the global landscape that influences Bitcoin ETF development and institutional adoption. The index provides data-driven insights into how government policies affect cryptocurrency market dynamics and investment flows across different jurisdictions.
