Bitcoin ETFs bleed $1.72B weekly as outflow streak hits four weeks

Spot Bitcoin ETFs have now shed $5.4 billion over four consecutive weeks, the longest sustained redemption streak since the product class launched in January 2024.

Bitcoin ETFs recorded $1.72 billion in net outflows for the week ending June 5, extending a four-week redemption streak that has erased $5.4 billion from the product class, according to SoSoValue data.

"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," Matthew Pinnock, chief operating officer at Altura DeFi, said. "Bitcoin's recent weakness has been driven more by changing rate expectations and institutional risk appetite than by crypto-specific developments."

BlackRock's IBIT accounted for $1.34 billion of the weekly total, with $440.3 million exiting on June 1 alone. Fidelity's FBTC lost $201.9 million and Grayscale's GBTC shed $144.3 million. The outflows were concentrated across the first three trading days of June — $483.8 million, $519.1 million and $396.6 million — before a brief $3.2 million inflow on June 4 and a $325.7 million outflow on June 5, per Farside Investors data. Total assets under management across the 11 spot Bitcoin ETFs have compressed to roughly $94 billion from $104 billion.

The sustained selling marks a sharp reversal from February, when Bitcoin last traded near $60,000 and ETF outflows slowed to $318 million as buyers stepped in. This time, outflows have accelerated as prices fell, signaling that institutional portfolio managers are treating the drawdown as a structural de-risking rather than a buying opportunity. Bitcoin traded near $63,100 as of 14:00 UTC, down about 18% from its recent peak.

IBIT's outsized role in the institutional retreat

The concentration of redemptions in BlackRock's IBIT — which absorbed roughly 78% of the week's total outflows — is the most diagnostic signal in the data. IBIT has functioned as the primary institutional sentiment indicator since the spot Bitcoin ETF product class launched in January 2024, and its outsized contribution reflects allocation decisions by the largest and most risk-managed buyers in the market.

Bitrue Research analyst Andri Fauzan Adziima attributed the selling directly to rising inflation expectations, elevated Treasury yields and a diminishing probability of near-term Federal Reserve rate cuts — conditions that structurally disadvantage non-yielding, speculative assets. When the risk-free rate rises or is expected to remain elevated, the opportunity cost of holding Bitcoin in an ETF wrapper increases, prompting portfolio risk managers to reduce exposure via the most liquid vehicle available.

Ether ETFs follow the same pattern

Spot Ether ETFs recorded $173.05 million in net outflows for the week ending June 5, extending a four-week losing streak that has reached $885.6 million in cumulative redemptions, per SoSoValue data. BlackRock's ETHA led the selling with $13.2 million in outflows on June 5 alone.

Smaller altcoin ETF products showed a divergent pattern. HYPE ETFs posted $16.65 million in net inflows and XRP ETFs recorded $2.62 million in inflows, while Solana ETFs shed $6.52 million in outflows over the same period.

The broader macro backdrop remains the dominant variable. A stronger-than-expected U.S. nonfarm payrolls print on Friday reinforced a labor market too resilient to justify near-term Fed easing, while a fresh Iran-Israel military escalation sent oil prices soaring more than 5%. Institutional rotation into AI equities has also measurably compressed crypto allocations across multi-asset portfolios, according to market participants.

The analytical question is whether the forced selling is approaching exhaustion or whether a deeper reassessment of Bitcoin's role in institutional portfolios is underway. For now, the data points to the latter.

This article is for informational purposes only and does not constitute investment advice.