Bitcoin and ether ETFs extended outflow streaks to nine and 13 sessions on May 28, while XRP, HYPE and Solana funds drew inflows as capital rotated into altcoin vehicles.
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Bitcoin and ether ETFs lose $350M as altcoin funds draw inflows
Spot Bitcoin ETFs shed $228.88 million on May 28, extending a nine-session outflow streak that has pulled more than $2 billion from the 13-fund complex since May 14.
Retail investors are losing patience after Bitcoin failed to hold above $80,000 in May, Santiment analysts said in a report, describing the outflows as a counter-signal that has historically correlated with buying opportunities rather than deeper slides.
BlackRock's iShares Bitcoin Trust drove the bulk of Wednesday's exits with $177.94 million in net redemptions, according to SoSoValue data, while Grayscale's GBTC shed $26.19 million and Fidelity's FBTC lost $19.16 million. Ether ETFs recorded their 13th consecutive session of withdrawals, bringing combined losses for the two largest crypto funds to roughly $350 million. XRP, HYPE and Solana ETFs posted modest net inflows, though the rotation was insufficient to shift the market's defensive tone.
Bitcoin traded at $73,504 at the time of writing, down 5.39 percent over the past seven days and roughly 42 percent below its October 2025 record above $126,000, according to BeInCrypto price data. ETF analyst James Seyffart said total Bitcoin ETF inflows are approaching their all-time high of $60 billion and expects the record to break in the near term.
Hawkish Federal Reserve signals and rising oil prices have been the primary macro drivers behind the institutional withdrawals. Goldman Sachs recently pushed its forecast for the next Fed rate cut to December 2026, while oil prices have lifted core inflation back above the Fed's 2 percent target, according to market participants.
Despite the selling, the 13 US spot Bitcoin ETFs still hold a combined $94.25 billion in net assets, equal to roughly 6.39 percent of the total Bitcoin market capitalization. Cumulative net inflows since launch remain at $55.79 billion, suggesting the recent withdrawals have trimmed rather than erased earlier institutional accumulation patterns.
Institutional Flows Tell a Mixed Story
Institutional market maker Jane Street reduced its Bitcoin ETF holdings by around 70 percent in the first quarter, while investment bank Goldman Sachs cut its position by 10 percent, according to filings cited by industry data providers. The Morgan Stanley Bitcoin Trust ETF, which launched on April 8, has attracted $264 million in net inflows to date, putting it above products from Invesco and WisdomTree that launched in January 2024.
Santiment's analysts said sustained ETF outflows have historically correlated with conditions favorable for patient accumulation rather than panic. On July 10, 2025, spot Bitcoin ETFs recorded $1.18 billion in inflows near a local price top, while $903 million in outflows on Nov. 20, 2025 proved well-timed for buyers, according to the firm's data.
Whether the outflow streak extends into a 10th session will depend on Thursday's flow data, which arrives after US markets close. The rotation into altcoin ETFs suggests capital is seeking higher-beta exposure within crypto rather than exiting the asset class entirely, though the persistent outflows from Bitcoin and Ether products point to a defensive institutional posture that could pressure spot prices in the near term.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitcoin and Ether ETFs Lose $350M While XRP and HYPE Draw Inflows[2] Bitcoin ETFs Hit Ninth Consecutive Day of Outflows as $228 Million Exits[3] Bitcoin ETFs on Brink of Net Outflow Territory For 2026[4] History Shows Bitcoin ETF Outflows Favor Accumulation, Says Santiment[5] Bitcoin ETF Outflows Are a ‘Contrarian’ Buy Signal: Santiment
