Bitcoin ETFs See $1B Outflow Amid Market Stagnation

U.S.-listed spot Bitcoin exchange-traded funds (ETFs) are facing sustained pressure as they record a third consecutive day of outflows, shedding over $1 billion in total.

The sharp exits reflect shifting institutional sentiment amid a stagnant Bitcoin price hovering around $105,000, with no clear catalyst for a breakout.

Trading data from SoSoValue showed a $268 million outflow in U.S. spot Bitcoin ETFs on June 2. This explains the increase in withdrawals, which were already high when over $1 billion was withdrawn from the funds on May 29 and 30.

Bitcoin ETFs Lose Ground Amid Volatility

It seems that broader unease in the market and a period of small price movements are the main reasons for the drop. According to Lena Koenig of BlockSphere Research, when Bitcoin stays in a similar price range, large investors may go elsewhere to search for opportunities.

BlackRock’s iShares Bitcoin Trust (IBIT), which is very closely tracked, has also experienced significant outflows. Even with the recent decline, IBIT has maintained its position and remains one of the top 25 biggest ETFs in the U.S., with more than $72 billion managed.

According to Bloomberg ETF analyst Eric Balchunas, IBIT’s growth has been very rapid. Since it started at 1.4 years old, IBIT is the youngest ETF in the top 25. It’s surprising how fast it has grown in popularity, even as other markets have become turbulent, he mentioned recently.

Global Bitcoin Interest Continues Growing Strong

US organizations have become more cautious with Bitcoin, yet worldwide interest in the asset is on the rise. Jacobi Asset Management announced on June 3 that it was removing investment limits on its Bitcoin ETF, allowing more people in Europe to invest.

Guernsey authorities changed the rules for cryptocurrencies, doing away with professional and capital barriers for investors in the product. Jacobi CEO Peter Lane is pleased with the regulatory change. He said:

“Our fund was designed from day one with a regulated, institutional-grade structure that investors could trust and were familiar with. Now, with greater regulatory alignment and growing public interest, we’re delighted to expand access to all investors across eligible jurisdictions.”

Things are cooling down on the U.S. side, but with regulated investment tools on the rise globally, interest in Bitcoin remains high.