Bitcoin ETFs Experience $1.7B Exodus During Fourth Consecutive Week of Withdrawals
Bitcoin exchange-traded funds continued their withdrawal pattern for a fourth consecutive week with billion-dollar outflows, as Ether ETFs experienced $173 million in redemptions while investors reduced cryptocurrency holdings during macroeconomic turbulence.
Exchange-traded funds tracking spot Bitcoin witnessed approximately $1.72 billion in net redemptions during the week concluding June 5, based on information from SoSoValue data.
These redemptions mark the continuation of a pattern spanning four consecutive weeks of billion-dollar withdrawals, with the streak beginning during the week that concluded May 15.
Information gathered by Farside Investors indicates that withdrawal pressure was most intense during June's opening three trading sessions, as the products experienced redemptions of $483.8 million, $519.1 million and $396.6 million, in that order. A temporary reversal occurred on Thursday when the ETFs registered $3.2 million in positive flows before experiencing $325.7 million in withdrawals on Friday.
The iShares Bitcoin Trust ETF (IBIT) from BlackRock represented the lion's share of weekly redemptions, experiencing approximately $1.34 billion in net withdrawals. The Fidelity Wise Origin Bitcoin Fund (FBTC) experienced redemptions totaling $201.9 million, and the Grayscale Bitcoin Trust ETF (GBTC) saw $144.3 million in net withdrawals during this timeframe.
This four-week pattern of redemptions represents a dramatic shift away from the robust inflows that characterized spot Bitcoin ETFs during the earlier months of this year.
Withdrawals indicate "macro-driven" risk reassessment
According to Matthew Pinnock, chief operating officer at Altura DeFi, the withdrawals from ETF products demonstrate a "macro-driven repricing of risk" instead of concerns specific to Bitcoin.
Pinnock explained that IBIT bore the brunt of redemptions due to its size, liquidity profile and position as a favored institutional access point. According to him, major investors generally utilize the most liquid and deepest products available when making portfolio risk adjustments.
"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
According to his assessment, Bitcoin's current vulnerability stems primarily from evolving rate expectations and institutional risk appetite rather than developments specific to the cryptocurrency sector.
Ether ETFs lose $173 million while alternative cryptocurrency funds continue attracting capital
Bitcoin products weren't the only ones experiencing withdrawals. Exchange-traded funds tracking spot Ether also experienced four consecutive weeks of outflows, losing $173.05 million during the week that ended June 5, based on SoSoValue data.
These losses came after redemptions of $241.45 million in the preceding week, following investor withdrawals of $215.99 million and $255.11 million during the two weeks prior to that.
Over the entire four-week period, Ether ETFs experienced approximately $885.6 million in redemptions.
Alternative cryptocurrency ETF products demonstrated a contrasting trend. HYPE ETFs registered $16.65 million in net capital inflows for the week concluding June 5. XRP ETFs demonstrated moderate inflows of $2.62 million, whereas Solana ETFs registered $6.52 million in outflows over this identical period.