Bitcoin's biggest ETF selloff yet hits $3.4 billion as AI stocks keep climbing
U.S. spot bitcoin ETFs logged an 11-day outflow streak totaling about $3.45 billion as bitcoin slid toward $70,000.
Intelligence analysis by GPT-5.4 Mini
Money is moving out of bitcoin funds at a record pace while investors keep bidding up AI and semiconductor stocks. The piece ties the selloff to weaker institutional demand and a small bitcoin sale by Strategy.
A big bucket that had been collecting money for bitcoin started leaking fast. People pulled money out for 11 days in a row, which is the longest such stretch since these funds were created.
At the same time, some investors were chasing shiny tech stocks instead, especially companies tied to artificial intelligence and computer chips. It is like choosing where to put lunch money: some picked the new toy, while others walked away from the old one.
The story says this matters because bitcoin had been getting help from big buyers. If those buyers slow down, the price may have less support.
Analysis
Record outflows
U.S. spot bitcoin ETFs have now posted 11 straight sessions of net redemptions, with withdrawals totaling roughly $3.45 billion, according to SoSoValue. The article says the streak began on May 15 and is the longest since the funds launched in January 2024, surpassing an eight-day run in February 2025.
Price pressure and rotation
The latest session alone saw about $484 million leave the funds, and the article links that to bitcoin falling about 4% during Asian trading and drifting toward $70,000. At the same time, risk appetite has not disappeared from markets overall: the story points to Nvidia rising 6% and notes continued strength in AI and semiconductor shares, suggesting some investors are choosing equities over crypto exposure.
Institutional demand looks softer
The piece also highlights Strategy’s disclosure that it sold 32 BTC, worth about $2.5 million, to fund distributions on preferred stock. While small relative to its holdings, it was the company’s first bitcoin sale since December 2022 and symbolically cuts against Michael Saylor’s buy-and-hold image. The article adds that CryptoQuant sees bitcoin increasingly acting like a holder market rather than a buyer-driven one, with ETF and corporate treasury accumulation slowing in recent months. Taken together, the story frames the selloff as more than a short-term wobble: one of bitcoin’s key demand engines may be losing momentum.
Key points
- U.S. spot bitcoin ETFs saw about $3.45 billion in net outflows over 11 straight sessions.
- The withdrawal streak is the longest since the funds launched in January 2024.
- Bitcoin fell toward $70,000 as the latest session brought another $484 million of redemptions.
- The article says investors are still favoring AI and semiconductor stocks, with Nvidia up 6%.
- Strategy disclosed its first bitcoin sale since December 2022, though it was only 32 BTC.
If ETF redemptions keep piling up, one of bitcoin’s main sources of new demand could keep fading. The article also suggests corporate and treasury buying has slowed, which would leave the market more vulnerable to further price drops. If investors continue preferring AI and semiconductor stocks, crypto may keep losing capital to other risk assets. Strategy’s first bitcoin sale since 2022, even if small, may also reinforce concerns that the institutional bid is weakening.
