As of May 27, 2026, U.S. spot bitcoin ETFs have only accumulated a net total of 4,500 BTC since the beginning of the year, marking a significant slowdown in demand, according to data from Swissblock.
ETF Demand Weakens
During the months of March and April, there was a consistent accumulation of bitcoin that helped lift its price from lows around $65,000. However, May has seen a reversal of this trend, with ETF flows shifting from accumulation to distribution.
- U.S. spot bitcoin ETFs have managed to absorb merely 4,500 BTC this year, a stark decline from the buying activity that contributed to the 2025 price rally.
- Swissblock noted that the ETF flows transitioned to distribution in May, causing the Risk Index to enter a high-risk zone due to the inability of spot ETF demand to absorb selling pressure.
- On-chain metrics indicate that demand is the weakest it has been since December, coupled with significant ETF outflows, heightening the risk of liquidation events.
The institutional interest in bitcoin BTC$75,807.15 appears to be dwindling.
Only 4,500 BTC has been absorbed by U.S. spot bitcoin ETFs since the year began, a notably low figure considering these products previously served as structural buyers during the 2025 rally, according to Swissblock data shared on X.
The consistent buying in March and April was pivotal in elevating bitcoin's price, but as of late May, the trend has reversed.
"After a period of strong accumulation in March and April, May has reverted to a distribution phase," Swissblock commented. "The Risk Index is now in high-risk territory, and ETF flows are declining. This indicates that spot ETF demand is no longer effectively absorbing the selling pressure."
This reversal is significant because prior bitcoin rallies required ETF purchases to offset the supply from miners, long-term holders, and traders cashing out profits.
When the buying pressure diminishes, the available supply must find alternative buyers, or the price will decline to a level that attracts buyers. Swissblock's analysis suggests that the Risk Index, which gauges structural selling pressure against absorption, may continue to rise as long as ETF flows remain in distribution.
As of Tuesday, bitcoin traded at $75,808, reflecting a 2.6% decline over the past month and nearing the lower end of its range for May. Earlier in May, the cryptocurrency had briefly surpassed $82,000 before macroeconomic pressures pulled it back under $80,000. Other cryptocurrencies, including ETH, XRP, and Solana, also faced losses, with Zcash experiencing the largest drop at 9% for the day.
Swissblock's findings align with recent on-chain data indicating a similar trend.
Market absorption of bitcoin relative to new supply has fallen to its lowest point since December, as previously reported by CoinDesk.
CryptoOnchain recorded $1.74 billion in U.S. spot ETF withdrawals over the last two weeks, while retail traders have begun leveraging their positions in anticipation of a market reversal. Historically, this combination has preceded sharp liquidation events when the market trends against the prevailing sentiment.
What remains unclear for traders is whether this situation represents a temporary pause or a more significant downturn.
ETF purchasing has previously decreased without leading to substantial market declines. Meanwhile, global equity markets are reaching new heights, and FXPro's Alex Kuptsikevich noted that bitcoin's 50-day and 200-day moving averages are set to cross soon, a phenomenon known as a golden cross, generally interpreted as a bullish indicator.
However, the waning ETF demand, which initially attracted new capital to the market, raises concerns about the sustainability of the rally that began in April.