Crypto Market Selloff: Bitcoin and Ethereum ETFs Face Record Outflows

The recent trend of institutional selling in the cryptocurrency market has been a subject of interest among analysts and investors alike. According to data from various sources, US-listed Bitcoin and Ethereum ETFs have experienced significant outflows over the past two weeks.

Bitcoin ETFs have seen a nine-day streak of net outflows, totaling $2.84 billion. This is the longest such streak since their launch in January 2024. BlackRock's iShares Bitcoin Trust (IBIT) has been particularly affected, with approximately $2.04 billion in cumulative net redemptions between May 15 and Thursday. IBIT retains its dominant position in the US spot Bitcoin ETF market, holding around 792,000 BTC as of Wednesday's market close.

Ethereum ETFs have also faced outflows, logging 13 consecutive days of losses totaling $694 million. This has led to institutional bearish positioning intensifying, with record short open interest of 16.39 million ETH worth $32.5 billion signaling a deeper structural reassessment of crypto ETF allocations.

The rotation in institutional demand is not limited to these two major cryptocurrencies. Spot XRP ETFs have recorded approximately $120 million in net inflows between May 4 and Thursday, indicating that investors are rotating within the crypto asset class rather than exiting it entirely.