Spot Bitcoin exchange-traded funds (ETFs) registered over $1.7 billion in net outflows during the week ending June 5, extending a four-week streak of heavy redemptions. This sustained withdrawal marks a notable reversal from the strong inflows earlier this year and reflects a broader repricing of risk in financial markets.
Outflows were heavily front-loaded in the first three days of June, with the funds shedding nearly $1.4 billion across those sessions alone. Despite a brief, minor inflow midweek, Friday saw another large outflow, signaling persistent investor caution. Leading the outflows was BlackRock’s iShares Bitcoin Trust ETF (IBIT), which accounted for the majority, withdrawing approximately $1.34 billion. Fidelity’s Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust ETF also saw substantial redemptions, at $201.9 million and $144.3 million respectively.
Matthew Pinnock, chief operating officer of Altura DeFi, attributed the redemptions primarily to a “macro-driven repricing of risk” rather than issues specific to Bitcoin. He noted that IBIT’s size and liquidity position it as the preferred vehicle for institutional investors making portfolio adjustments amid market turbulence. The timing of these outflows coincided with unexpectedly strong US employment reports, rising Treasury yields, and dwindling expectations for interest rate cuts this year, factors amplified by geopolitical tensions.
Spot Ether ETFs mirrored Bitcoin’s trend with four consecutive weeks of withdrawals, losing $173 million last week alone and approximately $885 million over the month. However, other altcoin-related ETFs displayed mixed activity. For example, HYPE ETFs attracted $16.65 million in net inflows, XRP ETFs saw modest gains, while Solana ETFs experienced slight outflows, indicating selective investor interest across alternative crypto assets.
This environment highlights how institutional investors are recalibrating exposure to crypto amid changing macroeconomic signals rather than reacting to fundamental cryptocurrency developments. The trend raises questions about the resilience of crypto ETFs as risk appetite shifts in response to broader economic factors.