US spot Bitcoin ETFs posted $396.6 million in net outflows on Wednesday, stretching an already painful losing streak to 13 consecutive trading days. The cumulative damage since the streak began on May 14: roughly $4.4 billion in withdrawals, according to data from SoSoValue.

That makes this the longest uninterrupted run of redemptions since spot Bitcoin ETFs debuted in January 2024.

Bitcoin itself has fallen approximately 21% since its May 15 peak, with the selling pressure from ETF channels compounding what was already a rough stretch for the largest cryptocurrency.

Where the money is leaving

BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF by assets, accounted for a significant portion of the daily redemptions. Fidelity and Grayscale products mirrored the trend, with consistent outflows across the major issuers rather than concentrated selling from a single fund.

The largest weekly outflow during the 13-day stretch hit $1.42 billion for the week ending May 29. Despite the headline-grabbing withdrawal figures, cumulative net flows into spot Bitcoin ETFs since their launch in January 2024 remain near record highs.

What’s driving the exits

The most straightforward explanation is profit-taking. Bitcoin had a strong run leading into mid-May, and the subsequent reversal gave institutional holders a reason to trim positions. Macroeconomic uncertainty has made institutional allocators more cautious across asset classes. There’s also the mechanical reality that ETF outflows create selling pressure on the underlying asset: when investors redeem shares, authorized participants sell Bitcoin to settle those redemptions, which can trigger further redemptions from investors watching their positions decline.

What this means for investors

Some analysts view the current stretch as a potential capitulation phase. In crypto market history, extended periods of institutional selling and capitulation have often preceded significant price lows.

The competitive landscape among ETF issuers is also worth watching. If BlackRock’s IBIT continues to see outsized redemptions relative to competitors, it could signal a rotation in institutional preferences rather than a wholesale exit from the asset class.