Digital asset investment products recorded $1.47 billion in net outflows last week — the second consecutive week of redemptions and the third-largest weekly withdrawal of 2026, according to CoinShares.
U.S. spot BTC ETFs bore the brunt of the selloff. The 11 listed products shed $1.26 billion across the five trading days from May 18 to May 22, extending a drawdown streak that has now reached six consecutive sessions. The sharpest single-day exit came on May 18, when $648 million in redemptions hit in a single session — the largest one-day outflow since late January. Friday’s exit totaled $105.2 million, with BlackRock’s iShares Bitcoin Trust accounting for $68.9 million and Fidelity’s Wise Origin Bitcoin Fund losing $36.3 million, per SoSoValue data.
As a result, cumulative 2026 net inflows into U.S. spot BTC ETFs have fallen to just $536 million year-to-date — down sharply from the $57 billion lifetime net inflow high reached in early May. The category attracted roughly $2 billion in April alone, making the current reversal particularly abrupt. Since May 14, the products have shed a combined $1.55 billion, nearly erasing the full year’s gains.
Spot ETH ETFs compounded the broader picture, recording a tenth consecutive day of outflows. The category shed $223 million last week, with no product registering inflows on any session, according to CoinShares. Altcoin ETF products tied to SOL and other assets also saw a significant pullback in demand, with Goldman Sachs having fully exited its spot Solana ETF position in Q1 2026 and Bank of America trimming altcoin ETF exposure in its most recent 13F filing.
Analysts cite a clear macro driver: U.S. Treasury yields have surged following hawkish signals from Federal Reserve Governor Christopher Waller, who on May 22 reaffirmed a higher-for-longer stance that effectively priced out near-term rate cuts. A strengthening dollar has added further pressure on risk assets, while geopolitical disruptions around the Strait of Hormuz are drawing capital into commodities. CoinDesk notes that anticipated rotation into the SpaceX IPO — potentially the largest in U.S. history — may also be pulling institutional allocation away from digital assets.
Thursday’s core PCE data release remains the near-term catalyst to watch. A softer-than-expected inflation print could revive risk appetite and reverse the outflow trend. Until then, BTC continues to trade near $77,000, caught between deteriorating institutional demand and key technical support on the onchain level.
