Bitcoin ETF Exodus, Kalshi Perp Approval, and Circle Stablecoin Freeze Rock Markets

U.S. spot Bitcoin ETFs have now logged a record ten-day outflow streak, with investors pulling nearly $3 billion from the funds in what marks the longest withdrawal run since the products launched in January 2024. BlackRock's iShares Bitcoin Trust accounted for a substantial share of the damage, recording roughly $2.04 billion in cumulative outflows between May 15 and May 29, including a single-day withdrawal of $527.8 million that ranks as IBIT's second-largest daily outflow on record. Analysts at Galaxy Research noted that the sustained selling pushed year-to-date ETF flows negative for the first time, with capital rotation toward AI-related equities and persistent geopolitical tensions cited as primary drivers.

The broader sell-off pushed BTC to around $74,000 as the S&P 500 simultaneously hit a new all-time high, underlining the decoupling of Bitcoin from traditional risk-on sentiment. Despite the ETF bleed, on-chain data showed mid-tier wallets in the 100-to-10,000 BTC cohort actually increased accumulation, and corporate treasury buyers added an estimated 7,400 BTC over the same stretch, suggesting demand is migrating away from the regulated ETF channel.

CFTC Greenlights First U.S. Bitcoin Perpetual Futures Contract

In a milestone for domestic crypto derivatives, the U.S. Commodity Futures Trading Commission approved Kalshi's Bitcoin perpetual futures contract, marking the first regulated perpetual in America. Unlike traditional futures, perpetuals carry no expiration date and are engineered to closely track spot prices, making them the most popular derivative instrument in global crypto markets. Kalshi CEO Tarek Mansour described the product as a gateway for American businesses to access a market that saw $90 trillion in trading volume last year, with a launch expected within the month.

Also making headlines this weekend, Circle froze $12.6 million in USDC linked to privacy protocol Zama's confidential smart contract, according to on-chain researcher ZachXBT. The exact rationale remains unclear, though wallets tied to Overnight Finance, a DeFi protocol currently facing civil litigation, had deposited $12.4 million into Zama earlier in May. The episode adds fresh scrutiny to centralized stablecoin issuers' ability to unilaterally freeze assets, a power ZachXBT says Circle has exercised incorrectly in more than 16 prior incidents. With Bitcoin hovering near multi-month lows and regulatory flashpoints multiplying, traders heading into June face a market defined by institutional retreat from ETFs, new derivative access onshore, and growing questions about stablecoin neutrality.