By JBizNews Desk
NEW YORK — May 29, 2026 — Investors have pulled approximately $2.8 billion from U.S. spot Bitcoin exchange-traded funds over nine consecutive trading days, marking the longest withdrawal streak since the products launched and signaling a major shift in institutional sentiment as capital increasingly flows toward artificial intelligence investments.
According to data compiled by Bloomberg and analytics firm SoSoValue, the selling streak began on May 15 and continued through May 28, surpassing every previous run of ETF outflows since spot Bitcoin ETFs debuted in January 2024.
During the same period, Bitcoin fell from roughly $80,000 to around $73,000, reflecting growing pressure from sustained institutional selling.
The pace of redemptions accelerated significantly this week.
The largest single-day withdrawal occurred Wednesday when investors removed approximately $733 million from the funds. More than $528 million came from BlackRock’s iShares Bitcoin Trust (IBIT) alone, representing the largest single-day outflow in the fund’s history.
Market analysts linked part of the move to a large institutional transaction executed through private trading venues known as dark pools, where sizable trades can occur outside public exchanges.
The withdrawal streak matters because spot Bitcoin ETFs have become the primary gateway through which pension funds, wealth managers, institutions, and traditional investors gain exposure to cryptocurrency.
Unlike direct cryptocurrency ownership, the ETFs allow investors to buy and sell Bitcoin through conventional brokerage accounts. When investors add money, ETF managers purchase Bitcoin. When investors redeem shares, the funds must sell Bitcoin holdings.
As a result, ETF flows provide one of the clearest indicators of institutional demand.
Right now, that demand appears to be weakening.
Many analysts believe the outflows are less about Bitcoin itself and more about competition for investment capital.
Artificial intelligence and semiconductor stocks have dramatically outperformed cryptocurrency investments throughout much of 2026, drawing significant amounts of institutional money.
Companies tied to AI infrastructure, cloud computing, advanced chips, and data-center expansion continue to attract investors seeking exposure to one of the fastest-growing segments of the global economy.
Recent gains in major technology names have reinforced that trend.
As AI-related stocks have surged, Bitcoin has struggled to generate comparable momentum, leading many portfolio managers to shift capital toward sectors producing stronger returns.
The concentration of withdrawals suggests the selling is being driven primarily by institutions rather than retail investors.
BlackRock’s IBIT and Fidelity’s FBTC accounted for the overwhelming majority of recent outflows, a pattern that analysts say is consistent with large asset allocators reducing exposure rather than individual investors making small portfolio adjustments.
Researchers at Galaxy Research described Wednesday’s redemptions as among the largest seen this year and noted that cumulative ETF flows for 2026 have now turned negative.
Some analysts characterize the move as a broader reassessment of portfolio allocations rather than simple profit-taking.
Geopolitical uncertainty may also be contributing to the trend.
The conflict involving Iran, Israel, and the United States has increased volatility across global markets, pushing investors toward sectors perceived as offering stronger earnings visibility.
While Bitcoin is sometimes promoted as a hedge against uncertainty, periods of heightened market stress have often seen the cryptocurrency trade more like a high-risk technology asset than a traditional safe haven.
That dynamic can make digital assets vulnerable when investors become more defensive.
Not everyone sees the outflows as bearish.
Some market strategists point out that previous periods of heavy ETF selling have occasionally coincided with important market bottoms.
Historical flow data analyzed by crypto research firms has shown that extreme pessimism often emerges near turning points rather than at the beginning of prolonged declines.
Whether that pattern repeats remains uncertain.
The next major test for the market comes with the May 30 monthly options expiration, an event that could increase volatility as billions of dollars in cryptocurrency derivatives contracts settle.
If ETF outflows continue beyond that date, Bitcoin could face additional downside pressure. If redemptions slow or reverse, investors may interpret the recent withdrawals as a temporary rotation rather than the beginning of a longer-term exodus.
For now, however, the message from institutional investors appears clear.
The biggest pools of capital on Wall Street are increasingly directing money toward the companies building the AI revolution, while reducing exposure to cryptocurrency assets that have struggled to match the sector’s recent performance.
Until Bitcoin regains momentum or presents a stronger growth narrative, AI appears to be winning the battle for institutional investment dollars.
Markets — JBizNews Desk
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