Bitcoin ETFs experience nearly $1 billion in outflows in just 2 days, following Trump Media’s decision to withdraw from bitcoin.
May 20, 2026
Recently, Bitcoin Exchange-Traded Funds (ETFs) have experienced significant outflows, nearing close to $1 billion in just two days this past week. This trend follows a previous week where $1 billion was also withdrawn, as reported by SoSoValue. Notably, Trump Media & Technology Group decided to retract its bitcoin ETF application, initially filed in June 2025, further adding to the dwindling confidence in the cryptocurrency market.
Bitcoin ETFs have served as a reliable pillar of support for Bitcoin amidst ongoing global uncertainties. However, analysts caution that a sustained decline in flows could ultimately weaken this support, leading to potential downward pressure on Bitcoin prices. Bitcoin, having slipped under the crucial $80,000 threshold, has been trading in a narrow range between $76,100 and $77,550 over the last day, with mounting concerns over increasing bond yields and the geopolitical landscape in Iran contributing to the prevailing market sentiment.
Market observers have pointed out that Bitcoin has been essentially range-bound between $76,000 and $78,000, reflecting the prevailing market indecision and a lack of clear macroeconomic direction. As Dean Chen, an analyst at Bitunix, explained to Sherwood News, rising global interest rates could trigger a surge in volatility across various asset classes, including cryptocurrencies.
Meanwhile, Tim Sun, a senior researcher at HashKey, highlighted the recent string of outflows following several weeks of continuous inflows, concluding that the rebound witnessed in early May may not be sustainable. According to Bitfinex analysts, Bitcoin’s recent price decline below $78,000 has unveiled underlying structural weaknesses in the crypto market. The diminishing interest in spot ETFs and leveraged yield products, coupled with increasingly hostile macro conditions, pose a significant challenge to Bitcoin’s resilience in the face of external shocks.
Glassnode analysts echoed these sentiments, pointing out a softening sentiment in the traditional finance sector, as evidenced by declining US Spot ETF MVRV and ETF netflows. This trend underscores the weakening institutional conviction underlying Bitcoin’s recent price movements. Despite the net outflows signaling a cooling off in Bitcoin’s rally and investors readjusting their positions, YTD net flows for Bitcoin ETFs have remained modestly positive at around $432 million, despite an overall negative return on Bitcoin in the year-to-date period.
In light of these developments, Trump Media & Technology Group’s decision to withdraw its Bitcoin ETF application appears to align with the intensifying competition within the Bitcoin ETF landscape. James Seyffart, a Bloomberg Intelligence analyst, noted that the company’s strategic withdrawal might be influenced by the increasingly crowded market for Bitcoin ETFs. Notably, Morgan Stanley’s recent launch of the Morgan Stanley Bitcoin TRUST fund on the NYSE, charging a fee of 0.14%, presents a competitive alternative to existing ETF offerings. This move signifies a dynamic shift in the financial landscape, with newer players vying for a larger share of the burgeoning market for cryptocurrency investments.