BTC-USD ETF Outflows Hit 10 Consecutive Days Near $3B While SPY Gains 9 Weeks

Bitcoin and the broader crypto market have dramatically decoupled from the S&P 500's nine-week rally. US spot Bitcoin ETFs saw record consecutive outflows: nine sessions initially totaling $2.8 billion through May 29, with updated reporting confirming a ten-day outflow streak nearing $3 billion. Ethereum ETFExchange-Traded Fund - a basket of securities trading like a single stock. flows were even worse, bleeding for 14 consecutive trading sessions. This divergence is stark and persistent.

The timing matters. While equities rallied on AI capex optimism and Iran ceasefire hopes, crypto assets drifted lower. Oil jumped 3 percent-plus on geopolitical risk, but Bitcoin, which should theoretically benefit from macro uncertainty and inflationThe rate at which prices rise across an economy. hedging, instead faced sustained outflows. XRP bucked the trend slightly with $15.2 million in spot ETFExchange-Traded Fund - a basket of securities trading like a single stock. inflows for a third straight week following CFTC futures approval, but even that failed to lift the broader market.

Regulatory headwinds loom. StablecoinA cryptocurrency designed to maintain a stable value, typically pegged to the US dollar. scrutiny from lawmakers and the JPMorgan-Coinbase clash over the CLARITY Act's stablecoin rewards framework is creating friction. JPMorgan CEO Jamie Dimon escalated criticism, warning the current framework 'could ultimately fail' and that banks will not accept certain terms. This regulatory cloud is dampening institutional risk appetite for crypto.

Some analysts frame the outflow streak as a contrarian indicator, citing extreme fear (Fear and Greed Index at 23 as of May 30), generational entry conditions, and accumulation by smart money. Bitcoin is testing multi-year support zones, and large institutional trades are visible on-chain. However, sustained ETFExchange-Traded Fund - a basket of securities trading like a single stock. outflows are a tangible metric of cooling mainstream investor enthusiasm, suggesting the crypto rebound may face headwinds until macro clarity or regulatory progress emerges.