Investors have pulled $4.7 billion from US spot Bitcoin ETFs since May 15, as a struggling digital asset market and shifting Federal Reserve expectations weighed on sentiment. Bitcoin fell from above $79,000 to under $60,000 over the period.
The selloff accelerated this week, with $1.7 billion in redemptions, per Farside Investors. BlackRock’s IBIT led the retreat, shedding $1.3 billion for the week and $3.4 billion since mid-May, far outpacing Fidelity’s FBTC, which logged $522 million in net outflows. Grayscale’s GBTC, once the poster child for ETF outflows, saw $363 million in net losses over the same stretch.
Bitcoin touched $59,353 on Friday, its lowest since October 2024, after a blowout US jobs report sent the dollar surging and effectively closed the door on near-term Fed rate cuts. May payrolls topped every economist’s estimate, reinforcing the case for a prolonged pause, or something more aggressive.
The data landed as Kevin Warsh begins his tenure as Fed chair, giving markets an early read on his appetite for tightening.
At the June meeting, policymakers are widely expected to strip out any remaining language signaling future cuts. The bigger question is whether Warsh adopts a hawkish tone on inflation, which has climbed to 3.8% as energy costs rise.
