Bitcoin ETFs Bleed $1.7B Amid Rising Rate Concerns

US spot Bitcoin ETFs saw $1.72 billion in net outflows last week, led by BlackRock's IBIT, which accounted for the bulk of the withdrawals with $1.34 billion. This is the largest weekly redemption the fund has recorded since its launch in January 2024.

The combined figure represents the largest weekly net outflow for the US spot BTC ETF market since February 2025, according to SoSoValue data.

Analyst Andri Fauzan Adziima attributes the trend to the May 3 non-farm payroll report, which showed a stronger-than-expected labor market and reduced near-term expectations of a Federal Reserve rate cut. Treasury yields moved higher in response, increasing the relative appeal of fixed-income instruments over non-yielding BTC.

Adziima also expects ETF flows to remain under pressure in early June but notes that factors such as potential bottoming of investor fear, seasonal patterns favoring inflows in the second half of June, and a possible shift in macro conditions could support a recovery in mid- to late June.