TokenPost.ai

U.S. spot Bitcoin (BTC) exchange-traded funds extended their longest streak of net outflows since launch, underscoring a cooling in 'institutional demand' even as capital rotates into other parts of the crypto ETF market.

According to Cointelegraph, total net redemptions from U.S.-listed spot Bitcoin ETFs reached roughly $2.84 billion over nine consecutive trading sessions—the longest run of withdrawals since products debuted in 2024, surpassing the prior record of eight sessions set in February 2025. Market watchers pointed to BlackRock’s iShares Bitcoin Trust ($IBIT) as a primary driver of the recent drawdown, reflecting how flows have become increasingly concentrated in the largest vehicles.

The sustained outflows arrive at a sensitive moment for risk assets, with macro uncertainty and shifting rate expectations often magnifying the impact of ETF flow data on short-term price action. Analysts said the persistence of redemptions suggests that some institutions are reducing directional exposure to Bitcoin via ETFs rather than adding to holdings on dips—an important signal because ETF creations and redemptions have been one of the most visible gauges of marginal demand since approval.

At the same time, the pattern has not been uniform across crypto-linked products. Reports indicated that certain XRP (XRP) spot ETF products and instruments tied to Hype (HYPE) have seen inflows, pointing to a 'rebalancing' rather than a blanket retreat from the sector. The divergence suggests investors are increasingly expressing views through relative-value positioning—shifting from crowded exposures into higher-beta or thematic trades—rather than exiting crypto entirely.

Ethereum (ETH) spot ETFs have also remained under pressure. Cointelegraph data cited in the report showed ETH funds recorded net outflows for 13 straight trading sessions, totaling about $694 million. The extended slide suggests that, even with Ethereum’s role as the backbone of decentralized finance, investor appetite for ETH beta has not recovered at the same pace as broader risk sentiment.

Geopolitics added another layer to market caution. In a Fox News interview, President Trump said the United States and Iran were close to a “very good deal,” while warning that if an agreement collapses he could ask the Department of Defense to get involved. He added that if Washington does not get the outcome it wants, it would “solve it another way.” Trump suggested that a deal could help guarantee navigation through the Strait of Hormuz while ensuring Iran does not obtain nuclear weapons.