U.S. spot Bitcoin ETFs posted their largest and longest withdrawal streak on record, with $3.45 billion pulled across 11 consecutive sessions ending June 2. Bitcoin plunged below $66,000 for the first time since April as institutional capital rotated into an AI-driven equities rally pushing global stocks to all-time highs.
U.S. spot Bitcoin ETFs posted their largest and longest withdrawal streak on record, with $3.45 billion pulled across 11 consecutive sessions ending June 2. Bitcoin plunged below $66,000 for the first time since April as institutional capital rotated into an AI-driven equities rally pushing global stocks to all-time highs.
U.S. spot Bitcoin ETFs have logged a record 11 consecutive sessions of net outflows totaling $3.45 billion, according to SoSoValue data cited by CoinDesk. The streak, which began May 15, surpassed the previous record of 8 consecutive days set in February 2025. The single worst day saw $1.1 billion exit the funds.
Bitcoin fell 6.4% to a 24-hour low of $65,708 on June 3, marking a 12.3% decline on the week. Ethereum broke below $1,900, and Solana's SOL fell 9% to $73.25. The MSCI All Country World Index set a fresh all-time high the same day, driven by semiconductors and AI.
The divergence between crypto and equities is the story. Global stocks hit fresh records on an AI rally — the Philadelphia Semiconductor Index rallied 6% to all-time highs — while Bitcoin suffered its worst institutional exodus since ETF launch. Charles Schwab analyst Jim Ferraioli noted that Bitcoin is 'losing its status as the market's dominant momentum trade' as capital rotates to AI, IPOs, and other momentum plays.
Strategy (MSTR) also disclosed its first Bitcoin sale since December 2022 — 32 BTC (~$2.5M) — adding a symbolic blow to the narrative. CryptoQuant warned that 'ETF and corporate treasury accumulation has slowed markedly,' suggesting the primary demand source behind Bitcoin's rally may be fading.
The Federal Reserve's June statement removed language about 'progress toward the 2% target,' with two voting members suggesting rate cuts could be pushed into 2027. The 10-year Treasury yield climbed 18 basis points to 4.82%, increasing the opportunity cost of holding non-yielding Bitcoin.
The OCC granted Circle final approval to establish Circle National Trust, a federally supervised national trust bank, placing the world's second-largest stablecoin (USDC, $73.2B) under direct federal banking oversight — with reserve management as a planned future capability.
Morgan Stanley amended SEC filings for its proposed Ethereum (MSSE) and Solana (MSOL) ETFs with a 0.14% management fee — the lowest in crypto ETFs — while offering staking yield (50-80% ETH, up to 100% SOL). Its Bitcoin ETF (MSBT), launched just April 8, already holds $364M.
SWIFT announced its blockchain-based shared ledger is ready for initial use, with 17 Tier 1 banks across six continents preparing to pilot live tokenized deposit transactions. The network — used by 11,500+ financial institutions and moving the equivalent of global GDP every 2-3 days — built the ledger in just nine months, marking the most significant mainstream blockchain deployment by traditional finance infrastructure.