US-listed spot Bitcoin ETFs reversed their momentum on Monday, posting $263 million in net outflows — the first redemptions in nine trading days — as Bitcoin slipped below the $77,000 mark. According to reporting by CoinTelegraph, the pullback signals a potential cooling in the institutional buying frenzy that had defined the first half of April.
The outflow reversal comes after a potent nine-day inflow streak that saw Bitcoin ETFs absorb $2.1 billion in fresh capital since April 13, a period when Bitcoin itself gained roughly 10%. That pace of institutional accumulation had been particularly striking given the supply constraints in the physical Bitcoin market.
Fidelity Leads the Outflow Wave
Fidelity’s Wise Origin Bitcoin Fund (FBTC) accounted for the bulk of Monday’s redemptions, with $150 million flowing out. Grayscale’s Bitcoin Trust ETF (GBTC) and ARK 21Shares’ Bitcoin ETF (ARKB) followed with $47 million and $43 million in outflows respectively.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Morgan Stanley’s Bitcoin Trust ETF (MSBT) recorded flat flows after weeks of consecutive inflows. The two funds had been among the steadier performers during the April rally.
Spot Ether ETFs also buckled under redemption pressure, seeing $50.5 million flow out on the same day. XRP and Solana ETFs saw zero inflows.
Institutional Demand Outpaced Supply — But Not Anymore
The April buying spree had revealed a striking mismatch between institutional capital deployment and actual Bitcoin supply. Michael Saylor’s MicroStrategy alone purchased 56,235 BTC through April, while global ETFs added another 34,552 BTC on behalf of clients. That combined total dwarfed the estimated 11,829 BTC released into markets through mining during the same period, according to HODL15Capital data.
This supply deficit had been cited by many analysts as a tailwind for Bitcoin price appreciation. However, the abrupt shift in ETF flows suggests that buyers have at least temporarily exhausted their appetite at current levels.
Sentiment Swings Signal Caution Ahead
The mood among Bitcoin traders shifted notably on Monday. The Crypto Fear & Greed Sentiment Index moved into “Neutral” territory for the first time in three months, registering a score of 47. By Tuesday, however, sentiment had flipped back into “Fear” as Bitcoin failed to reclaim the $80,000 level that had been a focal point for technical traders.
CryptoQuant analyst XWIN Japan attributed Bitcoin’s recent sharp decline not to any fundamental shift in spot supply and demand, but rather to a “classic liquidity event” stemming from forced liquidations of leveraged long positions. Earlier analysis from the firm warned that a sustained rejection of $80,000 could signal meaningful overhead supply at that level, potentially extending the drawdown for both ETF investors and leveraged traders.