US spot Bitcoin ETFs experienced a strong reversal on May 29, 2025, with a $347 million net outflow that unwound a ten-day inflow. The outflow was dominated by huge redemptions from Fidelity’s FBTC and Grayscale’s GBTC, whereas BlackRock’s IBIT registered a net gain of $125 million.
Bitcoin ETF Outflows Analysis
The $347 million plunge is the largest one-day plunge since March. Data by Farside Investors indicate that the price of Bitcoin fell over 3.5% during the period, which broke the confidence of the investors. The cryptocurrency fell from its record high of $108,850 to under $105,000.
The biggest loss that Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw was a total loss of $166 million. Grayscale’s Bitcoin Trust (GBTC) then reported a loss of $107.5 million. Other Bitwise and Ark 21Shares funds also saw redemptions. BlackRock’s iShares Bitcoin Trust (IBIT), however, maintained its winning streak with 34 consecutive days of no redemptions.
Ether ETFs Show Resilience
Spot Ether ETFs also did not flinch in this decline. They were able to capture $92 million of inflows on the same day as other ETFs and extended their ten-day inflow streak to that length. BlackRock’s iShares Ethereum Trust (ETHA) did it, capturing $50 million of these inflows.
But the majority of investors who own Ether ETFs have unrealized losses. As per a report by Glassnode, the typical investor is down roughly 21% when Ether is priced at roughly $2,610.
Market Sentiment and Future Outlook
The flow out of the Bitcoin ETF is a mirror image of the overall market volatility, which mainly arises due to the macroeconomic forces. These trade tensions initiated by US President Trump against imports from abroad have been the cause of such market volatility. However, the recent court ruling to relax these trade tensions has once again heightened investor sentiments.
In the future, Bitwise Asset Management analysts project Bitcoin ETF inflows at $120 billion in 2025 and then potentially increasing to $300 billion in 2026. The projection is proof of the enormous institutional demand for Bitcoin ETFs.
The $347 million US spot Bitcoin ETF May 29 outflow was a turning point in market dynamics that brought to an end an otherwise healthy inflow trend. Lagging Bitcoin ETF performance combined with reverse Ether ETF performance indicates heterogeneous investor sentiment.
