Bitcoin ETF Outflows Hit 105-Day High; Institutional Demand Cooling

Bitcoin ETFs recorded a sharp reversal in investor flows this week. On May 13, spot Bitcoin ETFs saw $635 million in net outflows, marking the largest single-day withdrawal in 105 days. Simultaneously, BlackRock moved $287 million of Bitcoin holdings, adding to signs that institutional appetite is cooling even as the price remains supported above $79,000. The outflows are particularly notable because they arrived without a panic-driven price collapse; they reflect a more measured exit by institutions that appear to be rotating capital elsewhere.

The 7-day simple moving averageAverage price over a defined period; smooths noise to show trend. of Bitcoin spot ETFExchange-Traded Fund - a basket of securities trading like a single stock. net flows has plunged to negative $88 million per day, the largest consistent outflow streak since mid-February. What distinguishes this period from prior selloffs is the character of the flow. Unlike the February panic, which coincided with macro uncertainty and rate hikes, the current outflows are occurring during a period of relative calm in equities and amid expectations that the Federal Reserve will keep rates higher for longer. This suggests institutions are shifting positioning on the margin, not fleeing risk.

JPMorgan's own Bitcoin holdings tell a conflicting story. In Q1 2026, JPMorgan increased its Bitcoin ETFExchange-Traded Fund - a basket of securities trading like a single stock. holdings by 175 percent, building a position of 8.3 million IBIT shares. This mega-bank's accumulation contrasts sharply with the broad outflow patterns, suggesting a two-tier market: mega-cap institutions are selectively buying dips, while smaller accounts are trimming.

The macro backdrop matters. Minneapolis Fed President Kashkari recently reinforced that inflationThe rate at which prices rise across an economy. remains too high, pushing expectations for Fed rate hikes later in 2026. That hawkish stance could support the dollar and real rates, headwinds for Bitcoin. Meanwhile, the Senate is advancing the CLARITY Act, which would give crypto friendlier regulatory treatment, a tailwind. The battle between macro headwinds and regulatory tailwinds will determine whether ETFExchange-Traded Fund - a basket of securities trading like a single stock. flows stabilize or extend lower.