Catenaa, Tuesday, June 02, 2026- Data from SoSoValue showed cumulative withdrawals from US spot bitcoin ETFs reached roughly $3.45 billion during the current 11-day outflow streak.
The negative momentum followed May’s broader monthly outflows totaling $2.43 billion, marking the largest monthly withdrawal wave since November 2025.
Analysts linked the continued institutional selling to rising inflation concerns, higher US Treasury yields and weakening expectations for near-term Federal Reserve interest rate cuts.
Researchers said many institutional investors have recently shifted capital toward artificial intelligence and semiconductor-related equities instead of crypto-linked investment products.
Bitcoin itself continued weakening late Monday, falling toward the $70,200 level before stabilizing slightly above $70,700 during overnight trading.
Market participants also pointed to rising geopolitical tensions involving the United States and Iran alongside Strategy’s recent bitcoin sale announcement as additional drivers of negative sentiment.
Analysts warned that sustained ETF outflows increase short-term downside risks for bitcoin because fund issuers may need to liquidate underlying holdings tied to investor redemptions.
Observers also noted that prolonged institutional withdrawals could weaken one of bitcoin’s strongest support pillars following the massive inflow cycle that followed ETF approvals in early 2024.
Some researchers argued the current environment reflects broader risk-off positioning rather than complete institutional abandonment of digital assets.
Others warned that continued macroeconomic uncertainty combined with declining retail confidence may increase volatility across the wider crypto market.
Bitrue Research Institute analysts described the ongoing ETF withdrawals as evidence of sustained institutional caution and weakening short-term market sentiment.
However, researchers also noted that current positioning appears more consistent with temporary defensive portfolio reallocation rather than structural rejection of bitcoin as an asset class.
Several market analysts added that bitcoin’s relative stability despite multi-billion-dollar ETF outflows may suggest underlying spot demand remains stronger than during previous correction cycles.
US regulators approved spot bitcoin ETFs in January 2024, opening regulated institutional access to bitcoin exposure through traditional stock markets.
The products rapidly attracted tens of billions of dollars and became among the fastest-growing ETF launches in financial history.
BlackRock’s IBIT emerged as one of the dominant products within the sector because of its scale, liquidity and institutional reach.
US spot bitcoin ETFs extended their losing streak to 11 days as institutional investors pulled billions from crypto funds amid rising macroeconomic pressure.
