U.S. spot Bitcoin exchange-traded funds recorded approximately $145.7 million in net outflows on Friday, May 8, extending recent weakness in institutional Bitcoin flows as traders reacted to rising geopolitical tensions and broader risk-off sentiment across crypto markets. According to Farside Investors data referenced across market reports, the session marked the second consecutive day of net Bitcoin ETF outflows.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) accounted for the majority of the withdrawals, posting approximately $97.6 million in net outflows during the session. The remaining redemptions were distributed across several competing spot Bitcoin ETF products, though no single issuer matched Fidelity’s scale of outflows.
The Friday withdrawals followed approximately $268 million in outflows recorded on Thursday, reversing a strong late-April and early-May inflow streak that had previously brought nearly $1.7 billion into spot Bitcoin ETFs over several sessions. Analysts said the sharp reversal reflected profit-taking after Bitcoin’s rally toward $82,000 lost momentum.
Bitcoin traded below the $80,000 threshold during Friday’s session, briefly touching lows near $79,700 before stabilizing around the low-$80,000 range. Market analysts attributed the decline partly to escalating geopolitical uncertainty involving Iran and renewed caution across leveraged crypto markets.
The broader crypto market also weakened alongside Bitcoin. Ethereum, Solana and XRP all posted declines during the session as traders reduced exposure and derivatives liquidations accelerated. According to market reports, leveraged crypto liquidations exceeded $330 million over a 24-hour period surrounding the selloff.
Bitcoin ETF Inflow Momentum Slows After Strong Early-May Run
The May 8 outflows interrupted what had been one of the strongest periods of institutional Bitcoin ETF demand since early 2025. Spot Bitcoin ETFs had recently completed a six-week inflow streak totaling approximately $3.4 billion, according to industry flow trackers.
BlackRock’s iShares Bitcoin Trust (IBIT) remains the dominant spot Bitcoin ETF by cumulative inflows and assets under management despite the recent pullback. Analysts noted that institutional allocations into regulated Bitcoin products remain structurally elevated compared with previous crypto market cycles.
Market participants said ETF flows continue functioning as one of the most important indicators of institutional sentiment within crypto markets. Since the approval of U.S. spot Bitcoin ETFs, daily fund flows have increasingly shaped short-term liquidity conditions and price momentum across digital assets.
Several analysts said the latest outflows likely reflected tactical repositioning rather than a major deterioration in long-term institutional demand. The market had experienced nine consecutive trading days of positive Bitcoin ETF inflows prior to the reversal, removing an estimated 33,000 to 35,000 BTC from tradable market supply.
Ethereum ETFs Continue Showing Relative Strength
While Bitcoin ETFs experienced significant outflows on Friday, spot Ethereum ETFs remained in positive territory. U.S. spot Ethereum ETFs recorded approximately $3.6 million in net inflows during the May 8 session, extending a recent pattern of improving institutional interest in Ether-linked products.
Analysts said Ethereum products have recently shown stronger relative resilience as institutional investors increase exposure tied to tokenization, stablecoin infrastructure and decentralized finance applications built on Ethereum. The network’s recent Pectra upgrade has also contributed to improving sentiment around Ethereum-related investment products.
The divergence between Bitcoin and Ethereum ETF flows reflects broader institutional positioning trends emerging during recent months. While Bitcoin continues dominating total ETF assets and institutional allocations, Ethereum funds have gradually stabilized after prolonged periods of weaker demand earlier this year.
Market strategists said crypto ETF flows are likely to remain one of the dominant drivers of digital asset price action throughout the second quarter as institutional investors continue adjusting exposure amid evolving macroeconomic conditions, regulatory developments and geopolitical risks.
