BTC-USD Spot ETFs Shed Nearly $3 Billion Over 10 Consecutive Outflow Days

US spot Bitcoin ETFs logged a historic 10-day consecutive outflow streak, shedding nearly $3 billion total, as institutional and retail investors turned risk-off. The outflows accelerated despite the S&P 500 posting its longest weekly winning streak since 2023, reaching all-time highs. This divergence is striking and signals that crypto assets are being treated as a separate risk class, decoupled from equity momentumThe empirical fact that winners keep winning over the medium term..

The primary driver is escalating stablecoinA cryptocurrency designed to maintain a stable value, typically pegged to the US dollar. scrutiny from regulators and banks. JPMorgan's Jamie Dimon publicly attacked Coinbase CEO Brian Armstrong over stablecoin regulation, particularly the contentious question of whether stablecoin issuers should be permitted to pay yield on customer deposits. Stricter stablecoin rules could reduce the utility of crypto trading infrastructure, pressuring demand for Bitcoin as a settlement layer.

Secondary catalysts include US-Iran geopolitical tensions, which elevated oil prices briefly but have since stabilized as ceasefire hopes emerged. The broader crypto market also faces headwinds from the Fear & Greed Index at 23 (extreme fear), which often accompanies forced selling and redemptions in leveraged funds. Ethereum and Solana ETFs have also bled capital, though at slower rates than Bitcoin.

Analysts interpret the 10-day outflow streak as either a capitulation signal (extreme fear = bottom) or a sign of structural weakness in crypto sentiment relative to equities. Supporters argue that institutional accumulation during drawdowns has historically preceded rallies, but the current environment suggests that crypto is not yet attractive to risk-parity portfolios even at depressed valuations. The question for traders is whether the extreme fear reading is now a contrarian buy signal or a harbinger of further liquidations.