$1 Billion in BTC Spot ETFs Vanished in 2 Days

Crypto Markets Witness Significant Volatility as Bitcoin ETFs Experience Massive Outflows

The cryptocurrency market has been on a rollercoaster ride, with Bitcoin (BTC) dropping 6% in market capitalization over the past two days. This minor correction triggered widespread liquidations as the overheated market reacted to the shift.

Spot Bitcoin ETFs See Major Withdrawals

The last two trading sessions marked the most bearish period for U.S. Bitcoin spot ETFs since late February. Investors pulled a staggering $975 million from major Bitcoin ETFs on May 29-30, with the final session ranking among the top five worst outflow days in spot BTC ETF history.

The hardest-hit funds include:

• iShares Bitcoin Trust (IBIT)
• Fidelity Wise Origin Bitcoin Fund (FBTC)

Both lost over $500 million combined in just 48 hours. Grayscale Bitcoin Trust (GBTC) and ARK 21 Shares Bitcoin ETF (ARKB) also suffered, with outflows exceeding $200 million.

Market Context and Alternative Opportunities

This pullback follows a 10-day inflow streak totaling $4.26 billion, highlighting Bitcoin spot ETFs' continued appeal among traditional finance investors. However, growing U.S.-China trade tensions and potential new sanctions have driven some investors to explore other options.

Ethereum-based ETFs have benefited from this shift, recording 11 straight days of inflows exceeding $500 million. Over three weeks, these products attracted over $3 billion, with Blackrock's ETHA and Fidelity's FETH leading the pack at $6 billion combined.

Futures Market Feels the Heat

Bitcoin's decline after its recent surge past $110,000 triggered massive futures liquidations. Nearly $675 million in crypto positions were wiped out in 24 hours, with long positions bearing 89.4% of the losses. The largest single liquidation was a $12.5 million BTC-USDT long on OKX.

This marks the most severe long position liquidation event since February 25, 2025, when Bitcoin lost $10,000 in two days according to CoinGlass data.

The recent volatility serves as a reminder for investors to maintain caution and focus on long-term strategies in the fast-moving crypto markets.