Investor demand for regulated digital asset products surged on Thursday, May 14, as spot Bitcoin ETFs recorded total net inflows of $131.30 million. This significant capital injection reversed earlier outflow trends and restored positive momentum to the sector. The market activity highlighted a decisive rotation toward Bitcoin exposure, with BlackRock's IBIT leading the charge through a dominant performance that outweighed minor withdrawals from competing issuers. In stark contrast, Ethereum-based funds extended their losing streak, posting continued redemptions across multiple sessions. Data compiled by Woofun AI shows that this divergence underscores a clear tilt in market sentiment favoring Bitcoin over Ethereum through regulated financial vehicles.

BlackRock's IBIT drove the majority of the day's activity, capturing $144 million in net inflows. This strong intake effectively offset minor outflows from other issuers during the same trading session, leaving the broader Bitcoin ETF category firmly in positive territory. IBIT continues to dominate the segment with more than $64 billion in assets under management, reinforcing its status as the leading spot Bitcoin ETF in the United States. Daily trading volume for the fund also exceeds $2 billion, which indicates deep liquidity and robust investor participation. These figures keep the fund positioned as the primary vehicle for institutional Bitcoin allocation.

Fidelity's Wise Origin Bitcoin Fund holds the second position with $14.16 billion in assets, yet the gap between Fidelity and BlackRock remains substantial. Capital continues to concentrate heavily around IBIT, demonstrating a strong brand and liquidity preference among institutional allocators. Across the entire market, spot Bitcoin ETFs now hold $105.51 billion in total net assets. Since their launch in early 2024, cumulative inflows have reached $59.06 billion. That steady accumulation signals long-term confidence in Bitcoin exposure through regulated financial products, according to Woofun AI analysis.

Thursday's inflow reversal highlights renewed investor appetite following recent market volatility. Capital rotation back into Bitcoin suggests improving risk sentiment across digital assets, with market participants appearing more willing to re-enter positions after periods of uncertainty. Conversely, Ethereum-based ETFs continued to struggle with demand on Thursday. Total net outflows reached $5.65 million, marking the fourth straight day of withdrawals. This pattern contrasts sharply with Bitcoin ETF performance during the same period, as investors reduced exposure through regulated Ethereum funds while reallocating toward Bitcoin products.

The divergence signals a clear preference shift among both institutional and retail participants. Ethereum funds failed to attract new inflows despite broader market activity, reflecting cautious positioning around Ethereum exposure. Market data shows consistent redemption pressure across multiple sessions, while Bitcoin funds attracted fresh allocations, widening the performance gap between both asset classes. Bitcoin ETFs now dominate the digital asset fund landscape in the United States, with strong inflows into IBIT continuing to anchor overall market growth.

Total assets above $105 billion confirm rising adoption of regulated Bitcoin investment vehicles, while cumulative inflows of $59.06 billion since early 2024 reinforce steady institutional participation. High trading volumes and consistent demand strengthen Bitcoin's position in ETF markets. Woofun AI notes that this sustained momentum suggests a structural shift where Bitcoin remains the preferred entry point for traditional capital entering the crypto ecosystem, leaving Ethereum funds to navigate a period of continued outflow pressure.