Institutions Said "Buy the Dip" in February — Now They're the Dip Itself 🪠

Bitcoin is once again trading near $60,000, but the institutional behavior around this price level has shifted sharply since February, according to spot bitcoin ETF flow data from SoSoValue. The 11 U.S.-listed spot bitcoin ETFs recorded net outflows of $1.72 billion last week, the largest single-week redemption in over a year, as prices fell back to levels last seen in early February. Bitcoin (BTC $61,922.96) changed hands near $62,000 at the time of writing.

The contrast with February is pronounced. In the first week of February, when BTC crashed to nearly $60,000, the same group of ETFs saw just $318 million in net outflows, and the two preceding weeks had registered $1.33 billion and $1.49 billion in redemptions. Outflows slowed as price dropped, indicating buyers emerged to absorb selling. This time, the pattern has reversed. Outflows have accelerated for four consecutive weeks, rising from $1 billion in the week ended May 15 to $1.26 billion the following week, $1.42 billion the week after that, and $1.72 billion most recently.

Lekker Capital CIO Quinn Thompson added a separate bearish read, arguing bitcoin remains under pressure due to digital asset treasury (DAT) issues, Strategy's STRC preferred shares, and quantum computing concerns. Thompson said those factors are contributing to one of the largest divergences between crypto and technology stocks in recent years, and he is also bearish on tech overall, citing weakening Magnificent 7 leadership and rising hyperscaler AI spending. Thomson's comments appeared in a separate CoinDesk report.

The acceleration of redemptions alongside falling prices marks a reversal of the dynamic seen in February, when institutional flows eased into the dip rather than intensifying through it.