Bitcoin ETFs Shed $630M in Largest Daily Exit Since January

In brief

• U.S. spot Bitcoin ETFs recorded $630.4 million in net outflows on May 13, the largest daily exit in three months.
• BlackRock’s IBIT led losses with $284.7 million, followed by ARKB ($177.1M) and FBTC ($133.2M).
• The outflows reflect profit-taking and positioning shifts, rather than a structural drop in institutional demand, per analysts.

U.S. spot Bitcoin ETFs bled $630.4 million on Wednesday, the worst single-day outflow in over three months, as back-to-back inflation shocks drove a sharp institutional retreat from risk assets.

Farside Investors data show BlackRock's IBIT bore the brunt with $284.7 million in redemptions, while ARK Invest's ARKB shed $177.1 million, Fidelity's FBTC lost $133.2 million, and Bitwise's BITB exited $35.4 million, together accounting for the entirety of the day's losses.

The move reverses a five-week inflow streak that had pulled in roughly $3.8 billion in cumulative net inflows through the week ending May 6, and marks the largest single-day outflow since January 29, when funds lost $817.8 million.

"A large part of the outflows was driven by this week's U.S. inflation data, which significantly shifted market expectations around Federal Reserve policy," Illia Otychenko, Lead Analyst at CEX.IO, told Decrypt.

April's CPI came in at 3.8%, above expectations and the highest reading since September 2023, followed a day later by a PPI print of 6%, the highest since February 2023.

"Together, these releases strengthened concerns that the Federal Reserve may consider rate hikes this year," he said.

Otychenko said the inflation data triggered broad risk aversion, which "by extension hit Bitcoin and caused elevated ETF outflows," and flagged rising bearish derivatives positioning as a further warning sign.

"There has been increased deleveraging of long positions and a rising put/call options ratio, both suggesting bearish sentiment has been increasingly building," he added.

Much will now depend on oil prices and developments around the Strait of Hormuz, Otychenko noted, warning that any prolonged disruption could push energy costs higher and “add another inflationary wave,” increasing pressure on crypto markets.