U.S. spot crypto exchange-traded funds have just registered their longest-ever losing streak, with 13 consecutive sessions of net redemptions draining roughly $4.4 billion from the market. The unrelenting outflows, stretching from May 15 to June 3, hit Bitcoin, Ether, Solana, and XRP funds alike, leaving only the newly launched Hyperliquid (HYPE) ETF category in positive territory.
Bitcoin ETFs lead the rout. Bitcoin products alone hemorrhaged $4.37 billion over the period, including $396.60 million on Wednesday. BlackRock’s iShares Bitcoin Trust (IBIT) bore the brunt, coughing up $342.34 million that day and about $3.3 billion across the streak. Fidelity’s Wise Origin Bitcoin Fund (FBTC) shed $54.26 million on June 3, bringing its streak-total redemptions to roughly $456.6 million. Galaxy Research labeled it the worst outflow window on record, with seven‑, ten‑ and twenty‑day trailing measures all hitting all‑time highs. The sell‑off in ETF shares has tracked a steep decline in Bitcoin’s price, which slid from above $71,000 in mid‑May to near $65,000, and from roughly $80,000 since the streak began. Total assets under management across U.S. spot Bitcoin ETFs tumbled from $104.29 billion to $82.83 billion, a $21.46 billion drop fueled by both redemptions and price weakness. Bitcoin ETF holdings now represent just 6.36% of the asset’s circulating market cap, down from over 7% at the peak.
Altcoin ETFs join the sell‑off. Ether funds lost $52.94 million on Wednesday, virtually all of it from BlackRock’s ETHA. Solana ETFs shed $12.74 million, with Bitwise’s BSOL leading, while XRP products saw $5.34 million in outflows. These categories had previously shown some resilience but are now moving in lockstep with Bitcoin.
HYPE stands alone in green. 21Shares’ THYP, the Hyperliquid HYPE ETF, attracted $2.99 million on Wednesday, pushing cumulative inflows to $139.51 million and total assets to $192.01 million. The HYPE token gained 3.45% on the day, a stark contrast to the broader market. Grayscale also entered the space with HYPG, marketing it as the lowest‑fee HYPE option at a time when every other major category is bleeding.
Institutional cautiousness deepens. First‑quarter 13F filings revealed that major holders were already trimming Bitcoin exposure before the outflow streak intensified. Jane Street cut its Bitcoin ETF position by roughly 70%, rotating capital into Ether ETFs, while Goldman Sachs increased its holdings by nearly 10%. Meanwhile, Strategy (formerly MicroStrategy) disclosed in a June 1 Form 8‑K that it sold 32 BTC between May 26 and May 31 at an average price of $77,135 – its first sale since December 2022 – to fund preferred stock distributions. Though the sale represented less than 0.004% of its 843,706 BTC treasury, it rattled sentiment, sending MSTR shares down 9% on Tuesday.
