Institutional Investors Pull Billions from US Crypto ETFs, Impacting Bitcoin and Ethereum Prices

Institutional investors have reduced their holdings in U.S. spot cryptocurrency exchange-traded funds (ETFs), leading to a significant outflow of $1.364 billion between May 18 and May 22.

The largest sell-off was seen in Bitcoin ETFs, with $1.26 billion in net outflows, primarily due to major players such as BlackRock, Fidelity, and ARK 21Shares selling substantial amounts of BTC. This decline has put pressure on the price of Bitcoin, although it managed to gain 0.80% amid easing macroeconomic risks.

Ethereum ETFs also experienced significant outflows, with $215.99 million withdrawn, mainly led by BlackRock. Despite some short-term resilience, Ethereum prices fell 4.22% due to insider selling and structural concerns.

Bitcoin's price may retest resistance levels near $78,500-$79,500 if it maintains support above $76,940. Conversely, Ethereum risks further declines if it fails to hold the $2,000 mark.