U.S.-listed spot Bitcoin exchange-traded funds (ETFs) saw a sharp return to outflows on June 5, shedding $278 million, according to data from SoSoValue.
The negative momentum followed a brief two-day recovery and came amid growing unease in financial markets, sparked by a high-profile feud between former President Donald Trump and Tesla CEO Elon Musk.
Sentiment Takes a Hit
Market sentiment took a decisive turn as the Cryptocurrency Fear & Greed Index dropped from “Greed” to “Fear” on June 6.
This shift came after tensions escalated between Trump and Musk through a series of social media exchanges, damaging what had been perceived as a close relationship.
The feud also had ripple effects beyond the crypto sector.
Shares of Tesla fell 14%, while Trump Media dropped 8%, according to TradingView data.
Persistent ETF Struggles
The June 5 outflows came after U.S. spot Bitcoin ETFs recorded a $1.2 billion outflow between May 29 and June 2, also driven by cooling sentiment.
Although June 3 and 4 showed brief signs of recovery, the pullback resumed forcefully.
SoSoValue noted that ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) led the retreat, seeing $102 million in withdrawals on June 5.
Notably, none of the Bitcoin ETFs registered inflows that day.
Global Trends and Ether Inflows
Over the past week, global Bitcoin exchange-traded products experienced $8 million in outflows.
In contrast, Ethereum-based products (ETPs) saw significantly better investor interest.
Spot Ether ETFs attracted $11.3 million in inflows on June 5, continuing a 14-day streak.
However, these figures declined compared to the $56.9 million added on June 4 and $109.4 million on June 3.
Ethereum Gains Institutional Traction
Ether products are benefiting from stronger network fundamentals and sustained interest in futures markets.
BlackRock, the world’s largest crypto ETF issuer, recently added $50 million worth of Ether to its portfolio on June 3, according to Arkham, a blockchain analytics firm.
As uncertainty surrounding Bitcoin ETFs grows, Ethereum appears to be consolidating its position as a more stable alternative for now.
