Bitcoin ETFs, $2.9 Billion Outflow 'Shakes' Market Sentiment..."Wall Street Bought, But Retail Investors Cooled Off?"

▲ Bitcoin (BTC)/AI Generated Image

While Wall Street funds have entered the market forefront, a diagnosis suggests that the actual temperature of the Bitcoin (BTC) market is still primarily driven by individual investor sentiment.

According to Cointelegraph, a cryptocurrency specialized media outlet, on May 30 (local time), Cory Klippsten, CEO of Swan Bitcoin, stated that individual investor sentiment surrounding Bitcoin should continue to be monitored. He explained that although institutional participation has grown, Bitcoin's ownership structure is not concentrated in specific Wall Street institutions.

In a Cointelegraph YouTube interview, Klippsten said, “It's not a structure where BlackRock holds Bitcoin and Fidelity holds Bitcoin. In reality, most of those who buy Bitcoin are individual accounts.” He explained that even if investors buy Bitcoin through the 'packaging' of an ETF, they still need to acquire and store the actual supply, and this demand is removed from the market supply.

He emphasized that while some paper products and futures products complicate the market structure, the ability to directly acquire on-chain Bitcoin is its unique differentiator. This means that the proliferation of institutional products does not diminish the importance of individual demand; rather, it is reflected in the Bitcoin market through actual supply and demand and custody structures.

U.S. spot Bitcoin ETFs recorded a cumulative net outflow of $2.9 billion since May 15. During the same period, Bitcoin fell by approximately 9.5%. The Crypto Fear & Greed Index registered 23 on Friday, indicating a state of extreme fear and signaling that investors have become more cautious in approaching the cryptocurrency market.

Klippsten also assessed that the likelihood of Bitcoin setting a new all-time high in 2026 has decreased. He stated that earlier this year, when Bitcoin was trading around $95,000, he saw about a 50% chance of a new high within the year. However, with a subsequent drop of about 23% to around $70,000, he has lowered that probability to between 20% and 25%.

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