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Global Equity Inflows Collapse as Tech Reversal and Big Bitcoin ETF Redemptions Shake Markets

A hotter-than-expected May PCE inflation print pushed investors toward bonds, reducing demand for growth stocks, triggering heavy redemptions from U.S. spot Bitcoin ETFs.

Overview

  • Fund flows flipped sharply in late June, with global equity inflows falling to about $7.5 billion and U.S. equity funds recording net outflows after a prior week of large purchases.
  • Technology-focused funds swung from massive inflows to roughly $18–20 billion in weekly outflows, reflecting investor concern about high valuations and debt-funded tech spending.
  • U.S. spot Bitcoin ETFs logged their seventh consecutive week of net outflows, with trackers reporting $1.79 billion for the week ending June 26 and a $696.3 million single-day withdrawal that week.
  • BlackRock’s IBIT bore the largest share of ETF redemptions, accounting for roughly $1.3 billion of the weekly Bitcoin ETF outflows and intensifying selling pressure on spot Bitcoin.
  • The pullback was driven by a hotter May PCE reading that raised expectations of firmer Fed policy and by reports that mega-cap tech and private firms tapped bond markets, prompting investors to shift into bond funds and cash.