US spot Bitcoin ETFs experienced a significant decline in investor interest, recording $1 billion in net outflows for the week ending May 15. This marked their largest weekly exit since late January and brought an end to a six-week inflow streak worth $3.4 billion, the longest positive run since July 2025.
The macroeconomic backdrop drove this reversal, with April's inflation data exceeding expectations and Treasury yields reaching their highest levels in over a year. This led to a surge in Treasury yields, which reached 4.54%, and a shift in investor sentiment towards risk aversion.
Despite this setback, institutional allocators remain optimistic about the prospects for crypto ETFs. A recent survey found that 86% of respondents still expect inflows to increase through 2026 as regulatory clarity improves.