US-listed spot Bitcoin ETFs abruptly snapped a powerful five-day inflow streak after Bitcoin plunged back below the critical $80,000 level, triggering $277.5 million in outflows and reigniting fears that crypto’s latest rally may be losing momentum.

The reversal marked the first daily ETF outflows of May and came after Bitcoin funds had absorbed nearly $1.7 billion in fresh capital over the previous trading week. The sudden shift underscores how quickly institutional sentiment can turn when Bitcoin volatility intensifies.

Bitcoin briefly surged above $82,000 on Wednesday before sharply reversing lower and falling beneath the psychologically important $80,000 threshold the following day, rattling both ETF investors and broader crypto markets.

BlackRock and Fidelity Lead Massive ETF Pullback

The biggest withdrawals came from two of the largest institutional Bitcoin vehicles on Wall Street.

Fidelity Investments’s Fidelity Wise Origin Bitcoin Fund recorded roughly $129 million in outflows, while BlackRock’s iShares Bitcoin Trust ETF saw another $98 million leave the fund.

The sharp outflows highlighted growing investor nervousness after Bitcoin failed to hold its latest breakout attempt above $82,000, a level many traders had viewed as critical for reigniting bullish momentum toward new highs.

Despite the broader sell-off, not all institutional products cracked under pressure.

Morgan Stanley’s Morgan Stanley Bitcoin Trust ETF continued attracting capital, pulling in another $7.3 million and extending a remarkable streak without a single outflow day since launching on April 8.

The fund has now accumulated approximately 2,920 BTC, worth around $232.6 million, with assets under management surging more than 557% since launch. The resilience suggests that while short-term traders may be pulling back, longer-term institutional appetite for Bitcoin exposure remains intact.

The Grayscale Investments Bitcoin Mini Trust ETF was the only other Bitcoin fund to post positive inflows during the session.

Fear Creeps Back Into Crypto Markets

The ETF reversal coincided with weakening sentiment across the broader crypto market as the Crypto Fear & Greed Index slipped back into “Fear” territory with a reading of 38.

Although sentiment remains significantly healthier than April’s panic-driven lows, the latest pullback serves as a reminder that institutional crypto demand remains highly sensitive to macro volatility and rapid price swings.

The turbulent trading session also coincided with the Nasdaq debut of 21Shares’ Canton Network ETF, the first US-listed ETF offering direct exposure to Canton Coin. The ETF closed slightly below its launch price, while Canton Coin itself slipped roughly 1.7% on the day.

Even with the sudden outflows, Bitcoin remains up approximately 11% over the past month, suggesting the broader bullish structure has not yet fully broken down. But the violent reversal below $80,000 has once again exposed how fragile crypto market momentum can become when institutional flows suddenly turn negative.