U.S.-listed spot Bitcoin ETFs recorded their largest single-day outflows in four months on Wednesday as rising inflation concerns and weakening risk appetite pressured crypto markets.
Summary
- U.S. spot Bitcoin ETFs recorded $635.23 million in net outflows on May 13, marking the largest single-day withdrawal since January.
- Bitcoin fell below the $80,000 psychological support level after hotter-than-expected U.S. inflation data weakened risk appetite across crypto markets.
- BlackRock’s IBIT, Fidelity’s FBTC, and Ark 21Shares’ ARKB led ETF outflows as institutional demand for Bitcoin exposure cooled sharply.
According to data from SoSoValue, the 12 spot Bitcoin ETFs in the U.S. recorded roughly $635.23 million in net outflows on May 13, marking the largest daily withdrawal since January.
BlackRock’s IBIT led the losses with $284.69 million in net outflows, followed by Fidelity’s FBTC, which saw $133.22 million leave the fund. Ark 21Shares’ ARKB also posted $177.10 million in outflows, while Bitwise’s BITB recorded another $35.40 million in withdrawals.
None of the remaining Bitcoin ETFs recorded inflows on the day, highlighting the broad-based decline in institutional appetite for Bitcoin exposure.
Spot Ethereum ETFs also remained under pressure, recording over $36.3 million in net outflows on the same day. Similar to Bitcoin products, none of the U.S.-listed Ethereum ETFs registered positive flows.
The latest withdrawals extended the recent slowdown in institutional demand after several weeks of strong inflows helped Bitcoin recover above the $80,000 region earlier this month.
Bitcoin fell below the key $80,000 psychological support level following the outflows, sliding from this week’s high near $82,300 to an intraday low around $79,600 today before stabilizing near $79,800 at press time.
Bitcoin’s price decline accelerated after the U.S. Producer Price Index surged 6% year-over-year, coming in significantly above market expectations.
The hotter inflation reading reinforced fears that the Federal Reserve may keep interest rates elevated for longer than previously expected, reducing hopes for near-term rate cuts and weakening sentiment across speculative assets such as cryptocurrencies.
Higher interest rates typically reduce market liquidity and increase the appeal of safer fixed-income investments relative to risk assets like Bitcoin and altcoins.
The latest inflation shock also weighed heavily on broader financial markets, with investors rapidly rotating away from high-volatility sectors.
Meanwhile, WTI crude futures remained above $101 per barrel on Thursday after the U.S. intensified pressure on Iran through fresh sanctions targeting entities involved in Iranian oil sales to China.
Elevated oil prices have further fueled concerns that inflationary pressure could remain persistent across the global economy.
ETF demand cools after recent rebound
The latest outflows followed a strong recovery phase in April this year when spot Bitcoin ETFs attracted nearly $2 billion in net inflows despite intermittent periods of volatility and profit-taking.
However, the recent downturn suggests institutional demand may be cooling again as Bitcoin struggles to reclaim key psychological resistance levels. Analysts note that ETF flows continue to closely track broader market sentiment, with investors reducing exposure during periods of heightened uncertainty and volatility.
Bitcoin remains under pressure unless bulls can reclaim the $80,000 level and push toward the next major resistance near $85,000. Failure to hold current levels could increase the risk of a deeper correction toward the mid-$70,000 range in the short term.
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