For Months, The ETF Story Was Simple: Money In, Numbers Go Up.
Last week, that script flipped.
U.S. spot $BTC ETFs recorded $1.72B in net outflows, the largest weekly withdrawal since February 2025. The only green day was Thursday, with a modest $3M inflow.
The biggest surprise? BlackRock's IBIT. The industry's largest Bitcoin ETF saw $1.34B in outflows - its worst week since launching in January 2024.
Context matters. ETF flows were already weakening in May, which closed with $2.43B in net outflows. Last week's numbers look less like a one-off event and more like a continuation of the trend.
The trigger wasn't crypto-specific. Strong U.S. jobs data reduced expectations for near-term Fed rate cuts, pushing Treasury yields higher. Suddenly, bonds started looking more attractive than a non-yielding asset like Bitcoin. #etf
Add geopolitical uncertainty and the result was a classic risk-off rotation. Not just crypto either - AI stocks, tech, and even gold felt the pressure.
ETF outflows don't automatically mean the bull market is over. But they do show that institutional demand isn't a one-way trade. Funny how "wall of money" narratives get tested the moment macro starts speaking.