Bitcoin’s largest ETF selloff to date reaches $3.4 billion as AI stocks continue their upward trajectory. U.S. spot bitcoin funds experienced cash outflows for 11 consecutive sessions through Monday, marking the longest redemption period since their launch in 2024, as investment capital shifted towards an AI-driven stock market rally.
What to know:
— U.S. spot bitcoin ETFs have reported unprecedented net outflows over 11 consecutive sessions totaling around $3.45 billion, coinciding with bitcoin’s price decline towards $70,000.
— The outflows, including $484 million in the most recent session, align with strong investor interest in AI and semiconductor stocks, highlighted by a 6 percent increase in Nvidia.
— The sale of 32 bitcoin by Strategy, its first since 2022, along with a slowdown in ETF and corporate treasury accumulation, indicates that the institutional demand that once propelled bitcoin’s rise may be diminishing.
According to data provider SoSoValue, U.S. spot bitcoin ETFs are currently experiencing the most significant and prolonged withdrawal streak on record, with roughly $3.45 billion withdrawn over 11 consecutive trading sessions as bitcoin nears $70,000.
The withdrawal streak, which began on May 15, is the longest since the funds were launched in January 2024, surpassing the previous record of eight days set in February 2025.
Despite this, Wall Street continues to exhibit a strong appetite for risk, with Nvidia rising 6% and other stocks related to semiconductors and AI drawing investor interest.
In the latest trading session, investors withdrew another $484 million from these funds, which contributed to a 4% decrease in BTC’s price during the Asian trading session.
In addition, Strategy (MSTR), the largest corporate bitcoin holder, announced on Monday that it sold 32 BTC, valued at approximately $2.5 million, to facilitate distributions on one of its preferred stock offerings.
Although this sale constituted a small portion of the company’s total holdings, it marked Strategy’s first bitcoin sale since December 2022 and followed months of Executive Chairman Michael Saylor advocating a buy-and-hold strategy.
This development also coincides with indications that other facets of institutional demand are beginning to decline.
In its latest weekly report, CryptoQuant cautioned that bitcoin is increasingly becoming a market dominated by holders rather than new buyers. CryptoQuant observed a significant slowdown in ETF and corporate treasury accumulation in recent months, suggesting that the ongoing record ETF withdrawal streak is yet another indication that one of the key sources of demand fueling bitcoin’s rally may be diminishing.