BlackRock’s IBIT Leads $648.6M ETF Outflows as Bitcoin Slides 6.7%
Spot Bitcoin ETFs suffered $648.6M outflows Monday after $1B last week, with BlackRock’s IBIT seeing $448M withdrawn. Bitcoin plunged 6.7% to a weekly low of $76,201 as geopolitical tensions and rising Fed rate-hike expectations spurred de-risking, driving the Crypto Fear and Greed Index to 25.
1. IBIT Drives ETF Outflows
On Monday, spot Bitcoin ETFs faced $648.6M net outflows, led by BlackRock’s IBIT with $448M withdrawn. ARK Invest and 21Shares products saw $110M pulled, while Fidelity’s ETF lost $63M, extending last week’s $1B in redemptions.
2. Bitcoin Price Decline and Sentiment
Bitcoin slid 6.7% from $81,700 to a weekly low of $76,201 before trading near $76,680. The Crypto Fear and Greed Index fell to 25, reflecting extreme investor caution.
3. De-risking Factors
Rising geopolitical tensions and increased Fed rate-hike odds prompted managers to de-risk crypto positions. Market pricing now implies over 90% likelihood of a June rate increase.
4. Limited Mitigants from STRC Demand
Demand for the STRC perpetual preferred stock has historically sparked mid-month Bitcoin rallies, yet similar past events failed to sustain recoveries. Aggregate open interest remains elevated at $26B, indicating ongoing speculative activity.