Bitcoin ETFs have seen sustained institutional selling pressure, with outflows surpassing $2 billion since early May. According to Swissblock data, the market has shifted from an accumulation phase to a distribution phase. Glassnode reports near-daily net outflows from U.S. Bitcoin ETFs, compounding market pressure amid ongoing global geopolitical tensions.
The recent exodus from Bitcoin ETFs signifies a definite change in institutional strategy. According to Swissblock, Bitcoin moved from accumulation in March-April to distribution in May, where sell pressure has outweighed buy pressure.
Data compiled by the blockchain analytics firm Glassnode shows net outflows from U.S. Bitcoin ETFs on virtually every trading day since May 7. Cumulative outflows have now surpassed $2 billion, removing a key support mechanism for the market.
Swissblock indicates that its Bitcoin Risk Index stands at 33 out of 100. A surge in this index typically signals an institutional portfolio change rather than a retail-driven shift.
Market sentiment declined further following news of U.S. strikes associated with Iranian military targets. Bitcoin responded promptly with increased volatility, as it has during previous geopolitical incidents.
The continued outflows revive discussions about Bitcoin’s safe-haven status. While capital exits Bitcoin funds, traditional gold has experienced increased demand during the same uncertain period.
The market outlook will hinge on whether Bitcoin ETF outflows slow and whether geopolitical risk continues to divert capital from high-risk assets.
