BlackRock’s IBIT led the losses with $68.9 million in outflows, followed by Fidelity’s FBTC. Since May 14, roughly $1.55 billion has left US Bitcoin ETFs as institutional demand weakened. Major firms like Jane Street and Goldman Sachs also reduced their Bitcoin ETF exposure during the first quarter of the year.
Bitcoin ETF Demand Collapses
The US spot Bitcoin exchange-traded fund (ETF) market is edging closer to posting net outflows for 2026 after a prolonged stretch of negative investor sentiment. On Friday alone, the Bitcoin ETF market recorded another $105.2 million in net outflows, which was the sixth consecutive trading day of withdrawals from the sector. The latest figures dropped total net inflows for the year to just $536 million.
BlackRock’s iShares Bitcoin Trust (IBIT), which carried the ETF market throughout the year, recorded the biggest losses on Friday with $68.9 million in outflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed closely behind after losing $36.3 million.
Bitcoin ETF flows (Source: Farside Investors)
No other major US spot Bitcoin ETF reported meaningful changes in flows during the trading session, but the withdrawals added to a larger trend that saw roughly $1.55 billion leave the market since May 14, the last day that the sector recorded a net inflow.
Spot Bitcoin ETF flows are considered to be one of the clearest indicators of institutional appetite for cryptocurrency exposure. Strong inflows generally suggest that large investors, hedge funds, and wealth managers are allocating fresh capital into Bitcoin markets. However, the recent decline in demand suggests that institutional confidence may be weakening due to the ongoing macroeconomic uncertainty and shifting market conditions.
The slowdown was also reflected in institutional portfolio adjustments. Major market-making firm Jane Street reportedly reduced its Bitcoin ETF exposure by around 70% during the first quarter of the year, while Goldman Sachs cut its Bitcoin ETF holdings by approximately 10%. These reductions all contributed to concerns that large financial institutions may be becoming more cautious toward crypto-related investment products.
Despite the recent downturn, BlackRock’s IBIT is still the strongest-performing Bitcoin ETF in the US market this year. The fund attracted approximately $2.7 billion in net inflows in 2026 alone, which certainly helped keep the ETF market in positive territory overall. Even so, IBIT’s current pace still falls far short of the massive $25 billion it accumulated throughout 2025.
The weakness has not been limited to Bitcoin ETFs. US spot Ethereum ETFs have already slipped into net outflow territory for the year, while newer altcoin-focused ETF products struggled to attract meaningful investor demand. Many analysts believe this is due to a more selective institutional approach toward crypto investments compared to the enthusiasm that followed the initial launch of spot Bitcoin ETFs in early 2024.
