Bitcoin spot ETFs have seen net outflows in 17 of the last 19 days, with investors pulling a combined $5.6 billion - pushing year-to-date flows to negative $2.17 billion.
Bloomberg analyst James Seyffart reports roughly $4.4 billion in Bitcoin was sold through those products over the past month. Since May 14, Bitcoin has dropped about 20%, from $82,040 to around $64,000.
MicroStrategy executive chairman Michael Saylor says the rot is a capital rotation into AI infrastructure, not a Bitcoin impairment. He notes that $400 billion has flowed into AI-related investments over the past six months, pulling capital away from Bitcoin ETFs. Saylor calls the volatility a buying opportunity.
Not all funds are bleeding: BlackRock iShares Bitcoin Trust and Grayscale’s Mini Bitcoin Trust have held positive flows year-to-date. Cumulative lifetime net inflow for all US spot Bitcoin ETFs remains at $54 billion.
The question remains whether the AI spending wave will continue to crowd out Bitcoin investment or whether the two can attract separate pools of capital.