Investors have pulled $2.8 billion from U.S. spot bitcoin ETFs over a record nine-day outflow streak, the longest stretch of withdrawals since the funds listed in January 2024. The exodus comes as bitcoin underperforms high-flying AI and semiconductor stocks, signaling a rotation away from digital assets.
Adding to the pressure, the crypto derivatives market faces a monthly options expiry of nearly $7.5 billion in Bitcoin and Ethereum on May 29. Max Pain levels—the price at which most options expire worthless—stand above current prices, suggesting potential further downside for both leading digital assets.
The outflows and expiry coincide with a week marked by significant drops across major cryptocurrencies globally. Bitcoin's relative weakness against tech equities has amplified selling, as traders gravitate toward sectors with stronger momentum.
Skeptics argue the outflows reflect typical month-end rebalancing rather than a structural shift in sentiment, pointing to continued institutional interest in crypto infrastructure. However, sustained redemptions and heavy derivative expiration could keep prices subdued near term.