Bitcoin exchange-traded funds in the United States experienced a significant shift on May 10, 2024, recording net outflows of approximately $84.7 million according to data from Farside Investors. The outflow marked a notable reversal for the spot Bitcoin ETF market, which had been riding a wave of institutional enthusiasm since the products launched in January.
TL;DR
- U.S. spot Bitcoin ETFs recorded ~$84.7M in net outflows on May 10, 2024
- The outflows ended what had been a period of steady accumulation
- BTC price stood at $60,792, down 3.58% in 24 hours
- Trading volumes for crypto investment products fell from $17B monthly average in April to just $8B
- Market participants pointed to upcoming U.S. CPI data as a key driver of uncertainty
ETF Outflows Signal Cautious Sentiment
The $84.7 million in net outflows on May 10 represented a sharp contrast to the flows seen in preceding days. According to weekly fund flow data released on May 13, cryptocurrency investment products had actually attracted $130 million in new inflows during the week ending May 10, effectively ending a five-week sequence of outflows. Bitcoin-focused funds accounted for the bulk of those weekly inflows at $144 million, but the final day of the week told a different story.
The data showed that between May 6 and May 10, institutions invested nearly $116.8 million in spot Bitcoin ETFs, marking significant inflows that were a record since the beginning of May. However, the final trading session saw selling pressure intensify, with traders pulling back ahead of key macroeconomic data.
Liquidations Mount as Bitcoin Dips Below $61,000
The broader crypto market felt the weight of the risk-off sentiment. Bitcoin dropped 3.58% over 24 hours to trade at $60,792, while Ethereum fell 4.16% to $2,909. Over the span of seven days, Bitcoin had declined 3.33% and Ethereum had lost 6.24% of its value.
The sell-off triggered a wave of liquidations across derivatives markets. In the 24-hour period, approximately 48,438 traders were liquidated, with total liquidation values reaching $114.66 million. The Fear and Greed Index sat at 46, firmly in neutral territory and reflecting the uncertain mood across the market.
Macroeconomic Uncertainty Weighs on Markets
A major factor behind the cautious positioning was the impending release of the U.S. Consumer Price Index data. Traders were bracing for the inflation report, which could influence the Federal Reserve’s outlook on interest rates. The crypto market has proven increasingly sensitive to macroeconomic indicators, with Bitcoin often trading in correlation with risk assets like equities.
Trading volumes for cryptocurrency investment products reflected this hesitation, dropping sharply from a monthly average of $17 billion in April to just $8 billion in the current period. The decline underscored how market participants were choosing to sit on the sidelines rather than commit capital amid uncertainty.
Institutional Interest Persists Despite Short-Term Outflows
Despite the day’s outflows, the broader institutional narrative for Bitcoin remained strong. Recent 13F filings unveiled fresh spot Bitcoin ETF positions held by institutional investors. Notably, the State of Wisconsin Investment Board disclosed a $64 million investment in Grayscale’s Bitcoin Trust (GBTC), a move that asset management firm MacroScope described as one of the most pivotal disclosures for Bitcoin to date.
As of mid-May 2024, U.S. Bitcoin ETFs collectively held approximately 830,301 BTC, representing roughly 3.954% of the total Bitcoin supply. Grayscale Bitcoin Trust led the holdings with 296,713.9 BTC, followed by BlackRock’s iShares Bitcoin Trust, which had been rapidly accumulating since its launch.
Regionally, while the United States and several other countries saw net inflows during the week, Canada experienced the largest outflows at $20 million, highlighting the divergent sentiment across global markets.
Why This Matters
The May 10 outflows, while notable, proved to be a temporary setback in what would become a remarkable run for Bitcoin ETFs. That single day of outflows turned out to be the last one for nearly three weeks — beginning May 13, the ETFs embarked on a 19-day consecutive inflow streak that would push Bitcoin toward new highs. The episode illustrates how short-term macroeconomic jitters can create brief windows of selling pressure, even as the underlying institutional adoption trend remains firmly intact. For investors, it was a reminder that crypto ETF flows are increasingly driven by the same macroeconomic factors that move traditional markets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk, and readers should conduct their own research before making investment decisions.
$84.7M outflows right before CPI data. institutions derisking into uncertainty, same playbook as traditional markets
^ institutions treat btc exactly like they treat equities now. derisk before macro events, re-enter after. the etf made btc tradfi adjacent
hedge funds pulling back before CPI is the same playbook as equities. btc etfs just made the correlation obvious
hedge funds pulling back ahead of cpi is standard tradfi playbook. btc etfs just made it visible on chain
institutions derisking before CPI is the exact same pattern we saw in traditional markets. the crypto correlation with macro is both a blessing and curse at this point
volumes going from 17B to 8B monthly was the real signal. 84.7M outflow was noise, the deleveraging was the story
penn_dust Tapio called this months ago. halving volumes told you everything about positioning before CPI. nobody listens until its obvious
trading volumes dropping from $17B monthly average to $8B tells you the real story. hedge funds pulled back hard ahead of CPI
volumes halving from 17b to 8b in a month is beyond cpi jitters. smart money was repositioning before the dump
volumes going from 17b to 8b in a month isnt cpi jitters, thats institutions straight up de-risking. big difference
Volumes halving in a month points to systemic derisking, not just CPI jitters. Something bigger was happening behind the scenes.
dimitri saying volumes halving points to systemic derisking is correct. $8B from $17B in one month isnt profit taking its positioning for something worse
vol_snap_ Dimitri was right about volumes halving. went from 17B to 8B monthly and nobody in mainstream finance even mentioned it. that kind of deleveraging doesnt reverse in a quarter
Tapio L. volume halving from 17B to 8B was the real signal. ETF flows are noise compared to aggregate market depth drying up. less liquidity means bigger moves on smaller catalysts
17 billion to 8 billion monthly average is a massive drop. the 84.7 million net outflow on may 10 was just the tip. smart money clearly repositioned before CPI release
etf_flow_tracker the $130M weekly inflow number masked the single day dump perfectly. averages hide the distribution, classic trick
Sven A. the 130M weekly inflow hiding a single day dump is why you always look at daily granularity. weekly averages are a marketing tool
Sven A. exactly, the weekly inflow number was doing heavy lifting hiding that single day dump. anyone trading ETF flows needs daily granularity or theyre trading noise
cpi data runs everything in tradfi and now its bleeding into btc etfs. the correlation is getting tighter every quarter
84.7M outflow on a single day while the weekly showed 130M inflow is why ETF flow analysis at weekly granularity is useless. daily data or youre just trading the average
60792 btc and everyone pretending the etf flows were sustainable lol. the 84.7m was just the start of the bleed
single day outflows dont mean much in isolation. but combined with dropping volumes and CPI uncertainty, the setup looks like more downside before the next leg up
base_case_btc next CPI print came in hot and confirmed it was positioning not panic. smart money front ran the data and re-entered at lower entries
cpi_doom_ hot print confirmed but BTC barely moved after the initial wick. everyone who derisked before CPI re entered lower and the structural bid absorbed the rest. market learned to front run macro
cpi_doom_ next print confirmed the thesis. institutions derisked before the data and re-entered lower. textbook macro positioning visible on-chain for the first time
84.7M outflow on May 10 and BTC barely flinched. the spot bid under 65k is deeper than ETF flows suggest. structural demand isnt ETF dependent anymore