Spot Bitcoin ETFs Record $1.72 Billion in Weekly Outflows as Market Sentiment Weakens

U.S. spot bitcoin exchange traded funds experienced their largest weekly outflows in more than a year, with investors withdrawing approximately $1.72 billion during the past week . The sharp decline highlights growing caution among investors as macroeconomic uncertainty continues to weigh on financial markets.

Most trading sessions recorded significant outflows, with only one day showing a modest net inflow of around $3 million.

BlackRock’s IBIT Sees Record Weekly Withdrawals

The largest share of withdrawals came from BlackRock’s IBIT fund, which recorded roughly $1.34 billion in net outflows. This marked the fund’s biggest weekly withdrawal since its launch in January 2024.

The latest figures extend a broader trend that began in May, when spot bitcoin ETFs collectively posted $2.43 billion in monthly net outflows.

Strong U.S. Economic Data Impacts Investor Demand

Market analysts linked the recent outflows to stronger than expected U.S. employment data. A resilient labor market reduced expectations for near term Federal Reserve interest rate cuts and pushed Treasury yields higher, making traditional fixed-income investments more attractive compared to non-yielding assets such as bitcoin.

Geopolitical tensions and weakness across global markets also contributed to a risk-off environment. South Korea’s KOSPI index fell 8.29%,

Despite the ETF outflows, bitcoin recovered over the weekend, briefly approaching $64,000 before stabilizing near $63,000. Analysts described the move as an oversold relief rally following a sharp 15% decline earlier in the month.