US Spot-Bitcoin ETFs Post Net Outflows for Six Straight Sessions, Seen by Some as Accumulation Signal

U.S. spot-Bitcoin exchange-traded funds have recorded net outflows for six consecutive trading sessions. Some analysts, however, say the trend could be read as a buying signal.

Cointelegraph reported on May 23 that blockchain analytics firm Santiment said in a report that ETF flows tend to reflect retail-investor sentiment more than institutional positioning. On that basis, the recent outflow streak may serve as a contrarian indicator.

Money has continued to leave spot-Bitcoin ETFs. Farside Investors data showed net outflows in each of the six trading sessions from May 15 through May 22. Santiment said retail investors grew less patient after Bitcoin failed to hold the $80,000 level last month.

Santiment said the latest move was closer to a correction that eased overheated conditions than a broader sign of market fear. Historically, persistent ETF outflows have more often been associated with favorable accumulation conditions for long-term investors, the firm added.

Some also see room for ETF flows to reverse. Bloomberg ETF analyst James Seyffart said in a recent YouTube podcast interview that Bitcoin ETFs have already recovered most of the roughly $9 billion of outflows recorded from October last year through February this year. He added that cumulative net inflows since the products launched now stand at about $60 billion and are likely to surpass the previous peak soon.