The Great Divergence: AI Crypto Tokens Surge as Bitcoin and Ethereum ETFs See Record Outflows

Tokens and gains that stood out

The breadth of the rally was unusual. NEAR Protocol (NEAR) surged 81% in a single week, climbing 14.88% in 24 hours to $2.72 on $1.20 billion in volume . Render (RENDER) posted a 16.78% daily gain to $2.33 in late May, after already gaining 35% in April . The Artificial Superintelligence Alliance token (FET) rose 21% in May, building on a 62% gain the previous month . Bittensor (TAO) climbed 67% in April alone .

Smaller tokens saw even more extreme moves. SKYAI surged 52% in 24 hours and was up roughly 350% over a month by mid-May . Telcoin (TEL) gained 76.21% in a week on the back of remittance and DeFi growth, and Irys climbed 40.12% as interest in decentralized data storage grew . Even Worldcoin posted a double-digit daily gain on May 26 .

The SpaceX, OpenAI, and Anthropic IPO pipeline

Much of the speculative heat came from the most concentrated AI IPO pipeline in history. SpaceX filed a confidential S-1 in early April 2026 targeting a June Nasdaq listing at a $1.75 trillion valuation—which would shatter Saudi Aramco’s $29.4 billion record for the largest IPO ever . OpenAI is targeting a Q4 2026 listing at a valuation between $850 billion and $1.1 trillion, while Anthropic is preparing for an IPO valued around $380 billion .

Together, the three companies represent a combined valuation of roughly $3 trillion to $3.6 trillion and are expected to raise close to $200 billion—equivalent to over 60% of the total stablecoin market cap . The IPOs created a halo effect: investors viewed AI tokens as a liquid, crypto-native proxy to gain exposure to the AI theme before and alongside these historic equity listings.

Analysts have warned of a potential liquidity drain, however. The IPOs could “pull tens of billions from global risk assets—including crypto—potentially tightening liquidity in the broader crypto market as institutional capital rotates into the new equity offerings” .

Cautionary signals from Bitcoin and Ethereum ETF outflows

While retail and speculative flows chased AI tokens, institutional investors were simultaneously exiting Bitcoin and Ethereum ETFs at a historic pace.

Bitcoin ETFs recorded six straight days of net outflows through May 22, draining $1.55 billion and cutting total 2026 net inflows to just $536 million . By May 30, outflows extended to a tenth consecutive day, with cumulative outflows surpassing $4 billion since May 7 . The week ending May 24 saw $1.32 billion in Bitcoin-specific outflows—the worst weekly exit of the year—contributing to a total crypto investment product bleed of $1.47 billion, the single largest weekly outflow recorded in 2026 .

Ethereum ETFs fared no better. They posted four consecutive days of outflows totaling $190 million by mid-May, later extending to an 11-day losing streak—the longest sustained withdrawal period since spot Ethereum ETFs launched in July 2024 . One single-day session on May 18 saw $648.64 million exit Bitcoin ETFs and $86.31 million exit Ethereum ETFs simultaneously .

The outflows reflect a “broader trend of cautious positioning” by institutions . While AI tokens rallied on narrative momentum and retail speculation, institutional money was quietly reducing exposure to the largest and most liquid digital assets. It is a divergence that raises questions about how durable the AI crypto rally can be, particularly if the mega-IPOs begin to absorb the same speculative capital currently chasing AI tokens.