Sosnick: ‘Crypto tourists’ exit as Bitcoin ETFs lose $1.42B

Interactive Brokers strategist Steve Sosnick warned that investors who entered crypto for short-term gains are exiting after spot Bitcoin ETFs recorded $1.42 billion in net outflows from May 25-29, while spot Ether ETFs posted $241 million in outflows over the same week.

In a podcast appearance, Sosnick said, “If it was bought by performance chasers, it’ll be sold by performance chasers.” He used the term “crypto tourists” to describe buyers who moved in during the rally and left when other trades offered stronger short-term returns.

The $1.42 billion withdrawal was the third-largest weekly outflow on record for spot Bitcoin ETFs. Spot Ether funds posted a third straight week of net withdrawals. The prior week saw about $1.26 billion leave Bitcoin ETFs, while funds tied to tokens such as XRP and meme-themed products attracted inflows, a pattern consistent with rotation among asset narratives.

Sosnick noted that the ETF structure has broadened the crypto investor base, bringing buyers who entered on headlines and momentum rather than a long-term reason for holding digital assets. Those buyers, he said, tend to exit quickly when another sector outperforms.

He identified rising interest in artificial-intelligence stocks and market reaction to Kevin Warsh’s first week as Federal Reserve chair as forces that have drawn speculative capital away from crypto.

Sosnick added that a rally supported by holders who understand why they own crypto would differ from one driven by transient flows, and he said market participants will be watching whether ETF flows stabilize in the coming weeks.