Bank of America's latest fund flow data reveals a significant market shift. Investors pulled a net $14.4 billion from U.S. equities in a single week, ending a three-month streak of inflows. The move was driven by a massive exodus from technology funds, with outflows reaching their highest level since the bank began tracking the data in 2008.
This selloff was led by institutional investors, hedge funds, and private clients-not retail traders. A recent BofA survey found that 56% of fund managers still label the AI investment cycle a "boom," yet capital is being repositioned. Upcoming major AI initial public offerings may be a factor, as institutions often liquidate existing holdings to free up capital for new listings.
The trend has implications beyond equities. Bank of America itself now permits its wealth advisors to recommend a 1-4% allocation to crypto assets. The bank's institutional holdings include approximately $53 million in spot Bitcoin and Ethereum ETFs, according to regulatory filings.
For digital asset investors, the event is a double-edged signal. A cooling appetite for risk in stocks can pressure speculative crypto markets. However, Bitcoin's recent behavior suggests it may be decoupling as a store of value during broader equity volatility. The scale of the $14.4B weekly outflow is historically large and will be scrutinized for signs of a deeper de-risking cycle or merely a tactical pause.