Bitcoin's institutional adoption story continues to grow, but investor demand has been uneven. U.S. spot Bitcoin ETFs recorded several large outflow days in June, including $396.6 million on
Bitcoin's institutional adoption story continues to grow, but investor demand has been uneven.
U.S. spot Bitcoin ETFs recorded several large outflow days in June, including $396.6 million on June 3 and $325.7 million on June 5, according to Farside Investors.
BlackRock says part of the reason may be that investors have been chasing a different trade. Artificial intelligence has dominated markets, drawing capital into chipmakers, hyperscalers and AI-related IPOs while Bitcoin has struggled to regain momentum.
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BlackRock head of digital assets Robbie Mitchnick said on June 22 that Bitcoin's weak performance since late 2025 mirrors a broader trend affecting assets outside the artificial intelligence sector.
"It's been a tough stretch for Bitcoin since last October for all of crypto and that's consistent in many ways with just about everything that is not AI-centric," Mitchnick said in an interview with Yahoo Finance.
Mitchnick said the AI boom has drawn capital away from a range of alternative assets, including Bitcoin, gold and precious metals, as investors increasingly focus on AI-related opportunities.
"The AI momentum is certainly sucking a lot of the oxygen out of the room."
Investors have increasingly piled into AI infrastructure companies, hyperscalers, semiconductor firms and high-profile technology listings. According to Mitchnick, assets outside the AI trade have struggled to attract the same level of attention.
Reuters recently reported that Bitcoin is on track for one of its worst starts to a year in more than a decade as AI-related investments continue to dominate market narratives.
The comments echo remarks from BitMEX co-founder Arthur Hayes, who also argues that AI "took all the money" as capital rotated toward technology-focused investments.
While AI has dominated investor attention, BlackRock believes another macro theme could eventually return to the forefront.
Mitchnick said growing concerns over U.S. debt levels and fiscal deficits could become a major catalyst for Bitcoin as the 2026 midterm elections approach.
Total national debt: U.S. Treasury"If we start to see U.S. debt levels and the deficit situation come back into focus, fairly likely to happen around the midterms," he said, "I think that we'll start to see probably a renewal in that momentum."
U.S. debt held by the public reached approximately $31.6 trillion as of June 3, while total gross federal debt stood at roughly $39.2 trillion, according to U.S. Treasury data. The Government Accountability Office has warned that debt is projected to grow faster than the economy for decades.
Rising borrowing costs have also pushed annual federal interest payments above defense spending.
Mitchnick said concerns over government borrowing and potential money printing remain one of the most important long-term drivers for Bitcoin demand, similar to gold.
"The more fear there is over the borrowing level and the risk of money printing, that is ultimately the most important, I think fundamental driver ahead."
Bitcoin was trading at $64,590 at the time of writing.
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