Bitcoin ETFs Suffer Heavy Outflows as Institutions Trim Exposure

The U.S. spot Bitcoin ETFs have seen significant outflows in recent days. According to Farside Investors, the funds shed $240 million on Friday after losing $225 million a day earlier. This two-day withdrawal of $465 million erased nearly half of the roughly $1 billion the funds had attracted during the previous seven-session inflow streak.

The heavy selling was led by BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT), which accounted for nearly $415 million of the two-day outflows. This suggests that institutions are trimming their Bitcoin exposure through the market's most liquid ETF, rather than building long-term positions.

Analysts linked the selling to renewed U.S.-Iran tensions, rising oil prices, inflation concerns, and growing expectations that the Federal Reserve could raise interest rates later this year. Despite the reversal, spot Bitcoin ETFs still ended the week with a modest net inflow of about $34 million, thanks to three strong inflow sessions earlier in the week.