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Investors yanked money out of US equities for the first time in three months, with technology funds bearing the brunt of a selloff that suggests the AI-fueled rally is running out of oxygen.
Bank of America’s latest fund flow data paints a stark picture: clients sold a net $14.4B in US stocks, with technology sector outflows hitting their highest level since the bank started tracking the data in 2008. That’s not a typo. The largest tech fund exodus in nearly two decades.
The smart money is heading for the exits
Here’s the thing about this selloff: it wasn’t retail investors panic-selling after a bad headline. Institutional investors led the charge, followed by hedge funds and private clients.
BofA’s June 2026 survey found that 56% of fund managers described the AI cycle as a “boom.” The survey featured responses from 198 managers overseeing $540 billion in assets.
Forthcoming large IPOs in the AI space may also be contributing to the repositioning. Institutional investors often free up capital ahead of major new listings, selling existing positions to make room for fresh allocations.
What this means for crypto markets
Bank of America itself is a case study in how traditional finance is warming to digital assets. BofA’s wealth advisors can now recommend 1-4% allocations in crypto assets, a policy shift that would have been unthinkable even a few years ago. The bank’s institutional crypto exposure includes approximately $53M in Bitcoin and Ethereum ETFs, according to 13F filings.
Why investors should be paying attention
For crypto-focused investors, the implications cut two ways. On one hand, a cooling risk appetite in equities can spill over into digital assets, particularly the more speculative end of the market. On the other hand, Bitcoin has increasingly behaved as an alternative store of value rather than a pure risk asset.
The $14.4B weekly outflow from US stocks is large by any historical standard. Whether it marks the beginning of a broader de-risking cycle or simply a healthy pause in an extended bull run will depend heavily on earnings season and how the upcoming AI IPOs are received.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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