Spot Bitcoin ETFs hemorrhaged $1 billion last week, snapping a six-week inflow streak that had brought in $3.4 billion. The sudden reversal reflects a broad capital rotation toward AI stocks and fresh macroeconomic uncertainty, according to fund flow data.
Why the money moved
The outflows weren't random. Investors appear to have pulled cash from crypto ETFs to chase gains in the AI sector, which has been on a tear this spring. That shift accelerated in mid-May as traders recalibrated their portfolios around tech-heavy names.
Macroeconomic headwinds didn't help. Lingering inflation data and hawkish signals from the Federal Reserve have made risk assets less attractive. When bonds offer a decent yield and AI stocks are soaring, crypto funds become an easy source of liquidity.
End of a six-week run
The $3.4 billion that had poured into spot Bitcoin ETFs over the prior six weeks was the longest consistent inflow period this year. It fueled a rally that pushed Bitcoin above $70,000 for the first time since late 2025. That momentum now looks fragile.
The $1 billion outflow is the largest single-week withdrawal since the products launched. It wiped out roughly a third of the prior streak's gains in just five trading days. The pace of redemptions accelerated toward the end of the week, suggesting traders were in a hurry to exit.
No one knows if this is a one-week blip or the start of a longer rout. The coming days will offer clues: if AI stocks continue to rally and macro data stays tense, more outflows could follow. Conversely, a stabilization in rates or a dip in tech shares could bring money back into Bitcoin ETFs.
The next big test is the Fed's meeting minutes due later this month. Until then, the crypto market is watching whether these ETFs can hold above the $90 billion total assets mark — a threshold that was only crossed in early May.
