According to SoSoValue, U.S. index funds saw their largest wave of outflows in nearly a year and a half. Investors withdrew almost $1.72 billion over the past trading week. The BlackRock ETF IBIT was hit the hardest. The only larger outflow was recorded in February 2025, when withdrawals reached $2.61 billion.
Bitcoin ETFs have now been struggling with heavy outflows for four consecutive weeks. Since May 15, the funds have lost around $5.4 billion in total.
Bitcoin lacks momentum
Bitcoin is simply lacking demand, especially from institutional investors, says André Dragosch from asset manager Bitwise. According to him, significant outflows from U.S. Bitcoin ETFs are one of the main drivers behind the current market weakness.
Martin Leinweber from index provider MarketVector also points to structural weaknesses. Bitcoin’s reputation as a safe-haven asset during times of crisis has recently suffered among institutional investors. In his view, the market simply lacks momentum.
Other areas, such as tech stocks, currently look more attractive to large investors. With higher profit margins in the technology sector, many companies are reallocating capital. As Leinweber put it, “crypto is bleeding in favor of Nvidia and others.”
Crypto investors are in “extreme fear”
The pressure is not only visible in prices but also in market sentiment. The Fear and Greed Index recently fell to 8 points, close to its all-time low of 5 points reached in February.
Strategy’s Bitcoin sale likely added to the uncertainty. Critics increasingly argue that founder Michael Saylor’s business model is under pressure. The company responded shortly afterward with renewed BTC purchases, attempting to restore confidence among investors.
