Bitcoin ETF demand has significantly declined, accumulating only 4,500 BTC since January, amid high selling pressure in May.
As of May 27, 2026, demand for U.S. spot bitcoin ETFs has diminished significantly, with only 4,500 BTC absorbed since the start of the year, according to Swissblock data. This marks a stark contrast to the robust buying activity seen earlier in 2025 that contributed to rising bitcoin prices.
Decline in ETF Accumulation
The months of March and April showed consistent accumulation of bitcoin that positively impacted its price, lifting it from around $65,000. However, May has brought a notable shift, with ETF flows transitioning from accumulation to distribution.
- U.S. spot bitcoin ETFs have accumulated just 4,500 BTC this year, highlighting a sharp decrease in institutional buying.
- ETF flows shifted into distribution in May, leading the Risk Index to indicate high risk due to insufficient absorption of selling pressure.
- On-chain indicators reflect the weakest demand since December, alongside significant ETF outflows, raising the risk of potential liquidation events.
Currently, bitcoin is trading at approximately $75,808, reflecting a 2.6% decline over the past month. The cryptocurrency had recently touched over $82,000 before macroeconomic factors caused a retreat below the $80,000 mark.
Swissblock pointed out, "After a period of strong accumulation in March and April, May has reverted to a distribution phase, indicating that spot ETF demand is no longer effectively absorbing the selling pressure." This trend is concerning because past rallies relied on ETF purchases to counterbalance selling from miners and traders cashing out.
If buying pressure continues to wane, bitcoin's price may need to adjust to attract new buyers. Swissblock's analysis warns that the Risk Index may keep rising as long as ETF flows remain negative.
Additionally, CryptoOnchain noted $1.74 billion in withdrawals from U.S. spot ETFs over the last two weeks while retail traders are adjusting their leverage ahead of anticipated market shifts. Historically, this trend has led to sharp liquidations when market sentiment turns bearish.
Despite the waning ETF demand, there are mixed signals in the market, such as potential bullish indicators indicated by the crossing of bitcoin's 50-day and 200-day moving averages. However, the sustainability of the rally from April remains uncertain without robust ETF participation.
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