Bitcoin ETF Redemptions Hit 10-Day Streak
U.S.-listed spot bitcoin exchange-traded funds (ETFs) have now logged an unprecedented run of outflows, with investors pulling money for ten consecutive trading days as of May 29. Over this stretch, roughly $2.8 billion exited these products, marking the longest withdrawal streak since their January 2024 debut. The outflows have accelerated in recent weeks, with about $1.3 billion leaving just in the last week and monthly withdrawals totaling around $2.3 billion.
On Wednesday, bitcoin ETFs recorded another $125.31 million in net outflows, extending the redemptions streak and underscoring the shift in investor sentiment. BlackRock’s iShares Bitcoin Trust (IBIT), one of the largest funds in the category, saw its biggest single-day outflow since launch earlier this week, a move reportedly linked to a sizeable dark pool transaction.
The impact has been visible in bitcoin’s price action: BTC has fallen from nearly $80,000 to around $73,000 during the period of heavy ETF redemptions. While these spot ETFs still hold more than $94 billion in net assets collectively, the persistent outflows signal that some investors are taking profits or reallocating capital after months of inflows earlier this year.
Investor Appetite Cools Despite Record Assets
On paper, bitcoin ETFs remain massive by any measure—yet demand has clearly cooled. The recent nine-session run of net outflows is notable not just for its length but also for its scale: more than $2 billion was withdrawn between May 20 and May 29 alone. This contrasts sharply with the strong inflows seen earlier in 2024 when spot bitcoin ETFs first launched and drew billions within weeks.
Despite holding over $94 billion in assets, these vehicles are now seeing a reversal in investor flows.
During the same period that bitcoin ETFs were bleeding capital, ether funds also saw significant redemptions—shedding approximately $309 million from May 20 to May 29. However, it’s not just crypto that’s lost favor: while digital asset ETFs struggled, traditional risk assets like U.S. stocks surged ahead. The S&P 500 posted its ninth straight weekly gain on Friday, the longest such run since last year.
XRP ETFs Buck Outflow Trend in May
While bitcoin and ether ETFs lost around $2 billion combined over nine days, U.S.-listed spot XRP ETFs quietly gathered momentum—posting about $35 million in net inflows from May 20 to May 29. On May 29 alone, XRP funds attracted nearly $12 million, with Bitwise’s product leading at $7.36 million of new investments.
Total net assets across all U.S.-listed XRP ETFs now stand near $1.12 billion—about 1.37% of XRP’s total market capitalization. Although this is a fraction compared to bitcoin ETF holdings, it highlights a micro-contrast: investors have recently favored XRP exposure even as they reduce positions in larger tokens like BTC and ETH.
Still, XRP inflows remain modest relative to the magnitude of bitcoin ETF withdrawals during the same window.
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Long-Term Holders Sit Tight Amid Volatility
Even as short-term traders exit positions through ETF redemptions and direct sales, long-term holders show little sign of capitulation. According to coindesk.com, supply held by long-term investors reached a record high of 15.8 million BTC recently—a figure that suggests “diamond hands” are largely unmoved by short-term volatility or shifting ETF flows.
In contrast, supply held by short-term participants has dropped by about 2.2 million BTC since December as newer entrants take profits or cut losses amid price swings and waning ETF demand. Notably, around 900,000 BTC previously stored on Coinbase crossed into “long-term holder” status after remaining untouched for over 155 days—a sign that some coins are moving off exchanges into cold storage or simply sitting idle.
It’s unclear whether Ripple Labs’ previously reported plan to raise at least $1 billion via a SPAC for an XRP treasury vehicle remains active; confirmation is still pending.
Signals yet to emerge
If U.S. spot bitcoin ETFs continue their net outflow streak beyond the record 10th consecutive day marked on May 29, it would immediately extend the longest withdrawal run since their January 2024 listing; whether Ripple’s reported $1 billion XRP treasury plan is still active remains unclear, as no confirmation has been provided.
