Why Billions Are Fleeing Bitcoin ETFs While Futures Open Interest Rises

• U.S. Bitcoin ETFs have seen over $4.01B in outflows since May 7, Santiment data shows.
• Bitcoin ETFs posted a nine-day outflow streak, with about $2.8B leaving products in May.
• Futures open interest rose as traders rebuilt Bitcoin positions across major exchanges.

U.S. Bitcoin ETFs have recorded more than $4.01 billion in outflows since May 7, according to Santiment data. The withdrawals came through a steady multiweek trend, showing continued pressure across listed Bitcoin ETF products in the United States.

In an X post, the platform highlighted that the exits did not come from one sudden shock. Instead, the data showed consistent withdrawals over several weeks as investors reduced exposure to Bitcoin through ETF products. The trend pointed to weaker risk appetite during the period.

Source: X

Bitcoin ETFs See Heavy Withdrawals in May

The sharpest stretch began on May 15, when Bitcoin ETFs started a nine-day outflow streak. About $2.8 billion left the products during that run. The platform said it was the longest withdrawal streak since U.S. spot Bitcoin ETFs launched in January 2024.

One of the largest daily exits came on May 27. Farside Investors data showed that Bitcoin ETFs recorded about $733.43 million in outflows that day. BlackRock’s IBIT accounted for $527.84 million of the total, making it the largest contributor to the daily withdrawal.

Source: Farside

Weekly flow data showed the same pattern. Outflows stood near $1 billion in mid-May before rising to $1.26 billion the following week. The latest weekly total reached about $1.30 billion, keeping the trend negative across several reporting periods.

However, Santiment explained that ETF flows are often used to read investor sentiment toward Bitcoin. Inflows usually reflect stronger demand, while outflows could show caution, fear, or lower risk appetite. 

Santiment said past ETF flow trends have sometimes acted as a contrarian signal. Heavy inflows have often appeared near local highs, while sustained outflows have sometimes formed near accumulation zones. However, this pattern does not confirm Bitcoin’s next move.

BTC Futures Open Interest Rises

While derivatives data showed a different signal. CryptoQuant analyst said that Bitcoin futures open interest increased over the past 30 days. 

The chart showed a return to open interest accumulation after earlier declines and sharp swings. This suggested that traders were again building positions in the futures market.

Binance remained the largest venue for Bitcoin futures activity. CryptoQuant data showed the exchange with about 302,500 BTC in open interest. 

Source: CryptoQuant

Bybit followed with around 230,000 BTC, while OKX recorded about 99,000 BTC. Kraken, BitMEX, Gate.io, and other platforms also showed notable activity.

The market had seen sharp open interest declines during earlier price drops. Those moves came alongside broad liquidations of leveraged positions. The latest increase points to renewed derivatives activity as Bitcoin holds above key support levels.

The data showed that a rise in open interest was not directly bullish or bearish. It indicated that more futures positions were active but did not confirm market direction. According to analyst high open interest could also increase volatility if crowded positions unwound during a sharp move.

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