U.S. Bitcoin ETFs See Largest Withdrawal Streak as Market Sentiment Sours

Recent data from SoSoValue reveals that U.S. spot bitcoin ETFs are experiencing their biggest and longest withdrawal streak to date, with investors pulling out approximately $3.45 billion over 11 consecutive trading sessions. This comes as bitcoin’s price dips towards $70,000, reflecting a shift in market sentiment.

Starting on May 15, this 11-session streak of net redemptions surpasses previous records, highlighting a growing lack of confidence in the cryptocurrency market. Despite this, Wall Street continues to show an appetite for risk, with stocks like Nvidia seeing a 6% increase and other semiconductor and AI-related companies attracting investor interest.

During the latest session, investors withdrew an additional $484 million from the funds, contributing to a 4% decrease in BTC’s price during Asian trading hours. In a related development, Strategy (MSTR), a major corporate holder of bitcoin, recently sold 32 BTC, valued at around $2.5 million, to finance distributions on one of its preferred stock offerings.

While this sale only represents a small portion of Strategy’s overall holdings, it is significant as it marks the company’s first bitcoin sale since December 2022. This move by Executive Chairman Michael Saylor, who has been a vocal advocate of a buy-and-hold strategy, signals a potential shift in the company’s approach to managing its cryptocurrency assets.

As institutional demand for bitcoin shows signs of weakening, other indicators point to a changing market landscape. CryptoQuant’s latest report highlights a shift towards a more holder-focused market, with ETF and corporate treasury accumulation slowing down in recent months.

The current record-setting ETF withdrawal streak underscores the diminishing demand that has been supporting bitcoin’s rally. As investors reassess their positions and market sentiment turns cautious, the cryptocurrency market faces a period of uncertainty and volatility.