Spot Bitcoin ETFs traded in the United States faced a sharp reversal on Thursday after five consecutive days of net inflows. While investors had funneled around $1.7 billion into these funds over the past week, Thursday saw a notable net outflow of $277.5 million. This marked the first daily net outflow in May for these products.
Major outflows hit Fidelity and BlackRock
The Fidelity Wise Origin Bitcoin Fund, which had recently attracted steady inflows, recorded the largest single-day net loss among spot BTC funds on Thursday with a $129 million decrease in assets. BlackRock’s iShares Bitcoin Trust ETF was also affected by the downturn, with $98 million in outflows. Both funds had seen increased trading volume in recent weeks, so this unexpected reversal triggered brief volatility across the market.
Bitcoin’s price surged above $82,000 on Wednesday before sliding below the key $80,000 level Thursday. According to CryptoAppsy data, this sudden price correction prompted investors to move more defensively in the short term. The fund outflows are believed to be closely tied to these recent swings in BTC value.
Experts highlight that rising market volatility and profit-taking in recent days have started to shift the balance in the ETF space. Following a period of heightened interest in spot ETFs, Thursday’s sudden setback appears to be driven primarily by short-term investors adjusting their positions.
Morgan Stanley bucks the trend
Unlike its peers, Morgan Stanley, the first major US bank to launch a spot Bitcoin ETF, continued to see steady growth despite the broader market outflows. Its Morgan Stanley Bitcoin Trust ETF drew in $7.3 million in net inflows on Thursday. According to data from the bank, the fund has never recorded a single day of negative net flow since its launch on April 8, 2026.
Morgan Stanley’s ETF has accumulated 2,920 BTC for its clients, reaching a total asset value of $232.6 million. This figure marks an asset growth of 557 percent since the fund’s inception.
On the same day, Grayscale’s lower-fee Bitcoin Mini Trust ETF was one of the few funds to post net inflows, while the flagship Grayscale Bitcoin Trust ETF saw no significant movement.
Debut day drops for Canton Network ETF
Adding to the week’s volatility, the 21Shares Canton Network ETF debuted Thursday on the Nasdaq as the first US ETF to offer direct access to the Canton Network’s native token, Canton Coin. The fund opened trading at $24.76 and closed its first session at $24.66. According to CoinGecko, Canton Coin itself lost 1.7 percent through the day, falling to $0.145.
Overall weakness across major cryptocurrencies dampened investor appetite for risk. As a result, the Crypto Fear & Greed Index, which measures market sentiment, dropped to 38 on Friday—entering the “fear” zone. While this is well above the April average of 17, data shows BTC has risen roughly 11 percent over the last 30 days.
Industry observers note that increased volatility and irregular short-term swings are currently shaping market sentiment. In the coming days, the key focus will be whether investor interest and price action can find lasting stability following this latest turbulence.
