Bitcoin ETFs Record $263M Outflows as BTC Falls Below $77,000

US-listed spot Bitcoin exchange-traded funds recorded $263 million in net outflows, ending a nine day inflow streak as Bitcoin (Bitcoin) fell below $77,000. The reversal marked the first net outflows since mid-April, following $2.1 billion in inflows recorded since April 13, during which BTC gained roughly 10%, according to SoSoValue data.

Investor sentiment also weakened, with the Crypto Fear & Greed Index briefly moving into Neutral territory at 41 for the first time in three months before shifting back to Fear as Bitcoin failed to break above $80,000.

Fidelity, Grayscale, and ARK Funds Lead ETF Withdrawals

The largest share of withdrawals came from the Fidelity Wise Origin Bitcoin Fund, which posted $150 million in outflows. This was followed by the Grayscale Bitcoin Trust ETF with $47 million, and the ARK 21Shares Bitcoin ETF with approximately $43 million in outflows.

Meanwhile, the iShares Bitcoin Trust ETF and Morgan Stanley Bitcoin Trust ETF reported flat flows after several days of gains.

Institutional Demand Continues to Outpace Bitcoin Mining Supply

Despite the ETF pullback, institutional demand remained strong overall. Strategy, led by Michael Saylor, purchased 56,235 BTC in April, while global ETFs accumulated 34,552 BTC during the same period.

By comparison, only 11,829 BTC were mined in April, highlighting a continued supply-demand imbalance. Analysts attribute the recent price drop to a liquidity-driven event caused by leveraged long liquidations rather than weakening spot demand.