Bitcoin ETFs Post Third-Worst Weekly Outflow Ever as Wall Street Rips on AI
Spot Bitcoin ETFs lost $1.42 billion last week, the third-worst on record, while HYPE, XRP, and Solana ETFs attracted inflows as capital rotated into alternative crypto products.
Spot Bitcoin ETFs recorded $1.42 billion in net outflows last week (May 25 to May 29, Eastern Time), the third-highest weekly outflow since the funds began trading in January 2024, according to SoSoValue data. BlackRock’s iShares Bitcoin Trust (IBIT) led with $966 million in weekly outflows, bringing its cumulative net outflow record to $63.81 billion. Grayscale Bitcoin Trust (GBTC) shed another $175 million on the week.
The pressure extended to a record streak.
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By Friday, US spot Bitcoin ETFs had posted 10 consecutive trading days of net outflows, the longest run since the funds began trading. Two-week cumulative outflows now sit at roughly $2.8 billion.
Total Bitcoin ETF net assets fell to $94.17 billion, with cumulative net inflows since launch at $55.66 billion. Spot Ether ETFs posted $241 million in net outflows, marking a third consecutive week of negative flows and a 14-day losing streak by Friday’s close.
Capital is rotating into alternative crypto products rather than leaving the asset class entirely. Spot HYPE ETFs drew $25.57 million in net inflows last week, extending their 8-day inflow streak since launch. Spot XRP ETFs added $15.2 million, while Solana ETFs brought in $2.36 million. Cumulative net inflows for the HYPE ETF category have now reached over $100 million in just over two weeks, the strongest spot crypto ETF debut on record by market-cap absorption rate.
The macro backdrop explains the divergence. The S&P 500 posted its ninth straight weekly gain, its longest winning streak since 2023, driven by AI optimism following blockbuster earnings from technology giants. Brent crude stabilized near $92 on US-Iran ceasefire hopes. Bitcoin, by contrast, slid below $73,000 at one point during the week, with the 200-day moving average near $82,000 continuing to act as resistance. Capital is rotating tactically: out of bitcoin and ether ETFs, into AI-correlated equities, and selectively into newer crypto ETF products tied to tokens with cleaner revenue and burn dynamics.
The structural counterweight remains intact. Bitcoin’s long-term holder supply hit a record 4 million BTC, exchange balances sit near six-year lows, and stablecoin supply has held firm. Joe Burnett of 10X Capital argued earlier in the week that bitcoin remains undervalued relative to its power-law-model fair value of $163,500. New Fed chair Kevin Warsh’s first FOMC meeting on June 16-17 is the next major macro catalyst.
