- Bitcoin ETFs saw $278 million in outflows as fear returned to the market after the Trump and Musk fallout.
- Ether ETFs gained $11.3 million as investors shifted focus amid weak sentiment in Bitcoin and equity markets.
- No Bitcoin ETF recorded inflows on June 5 showing rising investor caution and shifting market sentiment.
Bitcoin exchange-traded funds in the United States faced significant outflows on June 5. The sudden drop followed rising investor concerns tied to a public rift between former President Donald Trump and Tesla CEO Elon Musk.
Data from SoSoValue showed $278 million left U.S. spot Bitcoin ETFs on June 5. The retreat followed a short-lived recovery during June 3 and 4. That rebound came after large outflows between May 29 and June 2, totaling $1.2 billion in just three trading sessions.
Impact on Related Stocks
Investor unease spread beyond cryptocurrency markets. Tesla shares dropped 14%, while Trump Media shares fell 8%, according to TradingView data. These declines reflected a broader market reaction to the political and business tensions surrounding the Trump-Musk clash.
On June 5, not a single U.S. spot Bitcoin ETF recorded inflows. ARK Invest’s ARK 21Shares Bitcoin ETF saw the largest outflow at $102 million. The overall trend suggested cautious investor behavior as market sentiment weakened.
Global Crypto ETPs React
Global exchange-traded products followed similar patterns. Bitcoin-related ETPs recorded $8 million in outflows for the week. In contrast, Ether ETPs attracted strong attention, gaining $321 million in inflows during the same period.
Ether ETFs in the U.S. posted $11.3 million in inflows on June 5. That marked 14 consecutive days of gains. However, the number was lower than previous inflows of $56.9 million on June 4 and $109.4 million on June 3. These numbers suggested slowing momentum, though investor interest remained steady.
BlackRock Makes Ether Move
BlackRock, the largest crypto ETF issuer globally, acquired $50 million worth of Ether on June 3. The purchase added weight to Ether’s rising profile. Analysts linked this activity to positive signals from the ETH futures market and improving network strength.
Bitcoin ETFs turned red again as sentiment soured. Investors appear to be shifting focus from Bitcoin to Ether amid ongoing uncertainty. The Cryptocurrency Fear & Greed Index also dropped to “Fear”. This change marked a sharp reversal from the recent “Greed” sentiment seen earlier in the week. The sentiment shift aligned closely with the social media fallout between Trump and Musk, both high-profile figures in the crypto space.
