Bitcoin ETFs See $1.7B Weekly Outflows

Spot Bitcoin exchange-traded funds (ETFs) recorded about $1.72 billion in net outflows in the week ending June 5, according to SoSoValue data.

The outflows extended the streak to four straight weeks of billion-dollar redemptions, dating back to the week ending May 15.

Data compiled by Farside Investors shows that the pressure was concentrated across the first three trading days of June, when the funds shed $483.8 million, $519.1 million and $396.6 million, respectively. The ETFs briefly reversed into a $3.2 million inflow on Thursday before Friday's $325.7 million in outflows. 

BlackRock’s iShares Bitcoin Trust ETF (IBIT) accounted for the bulk of the week's redemptions, with about $1.34 billion in net outflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) lost $201.9 million, while the Grayscale Bitcoin Trust ETF (GBTC) recorded $144.3 million in net outflows over the same period.

The four-week redemption streak marks a sharp reversal from the strong inflows that supported spot Bitcoin ETFs earlier this year.

Daily net inflows for spot Bitcoin ETFs. Source: SoSoValue

Outflows reflect "macro-driven" risk repricing

Matthew Pinnock, chief operating officer of Altura DeFi, said the ETF outflows reflect a “macro-driven repricing of risk” rather than a Bitcoin-specific concern.

Pinnock said IBIT accounted for most of the redemptions because of its scale, liquidity and role as a preferred institutional access vehicle. He said large investors typically use the deepest and most liquid products when adjusting portfolio risk.

Related: Bitcoin risks new purge with bear-market losses still $35B below 2022 total 

“The timing of these redemptions aligns closely with stronger-than-expected US employment data, rising Treasury yields, and a sharp reduction in rate cut expectations this year amid the ongoing Gulf conflict,” Pinnock told Cointelegraph.

“Bitcoin's recent weakness has been driven more by changing rate expectations and institutional risk appetite than by crypto-specific developments," he said.

Ether ETFs shed $173 million as smaller altcoin funds keep drawing inflows

The outflows were not limited to Bitcoin products. Spot Ether ETFs also recorded four straight weeks of redemptions, shedding $173.05 million in the week ending June 5, according to SoSoValue data.

The losses followed outflows of $241.45 million the previous week, after investors withdrew $215.99 million and $255.11 million in the two weeks before that.

Across the four weeks, Ether ETFs shed about $885.6 million.

Other altcoin ETF products showed a different pattern. HYPE ETFs recorded $16.65 million in net inflows in the week ending June 5. XRP ETFs showed a modest $2.62 mllion in inflows, while Solana ETFs posted $6.52 million in outflows during the same time period. 

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