Bitcoin ETF Demand Slumps, Raising Concerns About Future Price Stability

The latest data from Swissblock indicates a significant decline in U.S. spot bitcoin ETF demand, causing concern among market analysts. Since the start of 2026, these ETFs have accumulated a net 4,500 BTC, but May has seen a reversal in this trend, with just three days left in the month.

According to Swissblock's data, March and April saw steady accumulation that helped lift bitcoin off lows near $65,000. However, May has flipped back into distribution, with the Risk Index moving into high-risk territory. This shift is particularly concerning as previous rallies in bitcoin relied heavily on ETF buying to absorb selling pressure.

The structural case for the rally that began in April is now looking thinner, and market analysts are warning of potential implications for the price of bitcoin. Meanwhile, equity markets globally are at record highs, but this may not be enough to counteract the decline in ETF demand.