Bitcoin ETFs face heavy outflows after CLARITY Act milestone
US spot bitcoin ETFs recorded $648.64 million in net outflows on 18 May 2026 as Bitcoin fell sharply from its mid-May highs.
The redemptions marked one of the biggest single-day ETF outflow events of the year and came as more than $126 billion was wiped from Bitcoin’s market value.
Bitcoin dropped from around $77,800 to just above $77,000 overnight, while daily trading volume fell to about $40.1 billion from $58 billion a day earlier.
The sell-off followed the CLARITY Act advancing towards a full Senate vote in Washington, even though many analysts viewed the bill as a long-term positive for the crypto sector.
The market reaction showed how traders can sell into good news when they have already positioned ahead of a major event.
Spot bitcoin ETFs create direct market pressure because funds often buy bitcoin when investors enter and sell bitcoin when investors redeem shares.
BlackRock’s iShares Bitcoin Trust led the outflows on 18 May with about $448 million leaving the fund.
The redemption marked IBIT’s second-largest single-day outflow of 2026, according to the figures cited in the report.
Fidelity’s FBTC and ARK’s ARKB also saw notable outflows as investors reduced exposure across several major spot bitcoin funds.
The latest daily outflow followed roughly $1 billion in net ETF outflows during the previous week from 11 May to 15 May.
That earlier weekly pullback ended a six-week run of inflows and raised questions about whether institutional demand had cooled.
However, year-to-date inflows across the largest bitcoin ETFs still remain above $65 billion.
The $648 million daily outflow represents less than 1% of that wider inflow base, which gives the headline number more context.
Bitcoin had moved above $80,000 on 4 May and tested the 200-day moving average near $82,000 before the pullback started.
Traders had been watching the $85,000 to $87,000 range after April delivered a record $2.44 billion in ETF inflows.
"Textbook SELL THE NEWS bloodbath,"
BullTheory said.
The phrase reflected a common trading pattern where investors buy ahead of a catalyst and then take profits once the expected news arrives.
Ethereum also fell more than 10% during the same period and lost about $30 billion in market value.
That broader weakness suggested the move was not limited to Bitcoin and may have reflected wider crypto profit-taking.
"The overarching trend continues to be historically favourable,"
Eric Balchunas noted.
Balchunas also said spot BTC ETFs had substantially beaten early market expectations for inflows, according to the reporting cited in the article.
The report compared the current move with earlier institutional rotation, including Jane Street trimming its IBIT position earlier this year.
That comparison suggests some investors may be rotating or locking in gains rather than abandoning bitcoin exposure altogether.
Bitcoin was trading near $77,000 at the time of the report and remained close to the $76,700 support zone.
The 20 EMA had moved into resistance near $72,200, while the hourly MACD remained deeply negative.
The bull case depends on ETF flows turning positive again within five trading days and Bitcoin holding the $76,800 support area.
Under that stronger scenario, Bitcoin could attempt to recover towards the $82,000 to $85,000 range by the end of May.
The base case points to slower outflows and Bitcoin trading between $75,000 and $79,000 for one to two weeks.
The bear case would strengthen if ETF outflows continued for more than two weeks and Bitcoin broke below the $76,300 support level.
A break below that support could open the way for a possible test of the $69,000 to $72,000 range.
The report said daily ETF flow data from CoinGlass or SoSoValue may be the key figure for investors to monitor next.
Two straight sessions of accelerating ETF outflows near current prices could suggest the decline is more serious than a short sell-the-news move.
At the time of reporting, Bitcoin price was $76,706.85.