Bitcoin ETF outflows hit $1.72B in a week as institutional mood shifts

Bitcoin spot ETFs bled $1.72 billion in net outflows last week, the largest weekly exodus in 14 months, as institutional investors sold into the dip.

"Investors are treating the $60,000 level differently than they did in February, when outflows slowed as prices fell," Greg Cipolaro, global head of research at NYDIG, said in a report.

The 11 US-listed spot bitcoin ETFs saw net redemptions of $1.72 billion in the week through June 7, according to SoSoValue data. That compares with $318 million in outflows during the first week of February, when bitcoin last traded near $60,000. Outflows have accelerated for four consecutive weeks, rising from $1 billion in mid-May to $1.26 billion, $1.42 billion and most recently $1.72 billion. Total assets under management in the funds declined to $82.83 billion from $104.29 billion, reflecting both the redemptions and a concurrent drop in bitcoin's price.

The shift suggests institutional demand, which had been a pillar of bitcoin's bull case, may be cracking as capital rotates into AI equities and investors prepare for a wave of high-profile tech IPOs including SpaceX and OpenAI, Cipolaro said. Whether bitcoin can hold the $60,000 support level likely depends on whether ETF outflows stabilize or deepen further.

$60,000 Defense and the February Contrast

Bitcoin fell below $60,000 on June 6 for the first time since 2024 before recovering to trade near $62,700 as of June 8, according to CoinGecko data. The rebound followed one of the cryptocurrency's weakest stretches this year, with BTC losing nearly $19,000 in 10 days and posting a weekly decline of about 14.6%.

The contrast with February is stark. When bitcoin crashed to $60,000 in early February, ETF outflows totaled just $318 million — and the two weeks before that had seen $1.33 billion and $1.49 billion leave. As the price fell, selling slowed and buyers showed up. This time, the pattern has reversed: as prices dropped, outflows accelerated week after week.

Multiple Headwinds, Not One Catalyst

Cipolaro identified several overlapping pressures weighing on crypto. AI-related stocks continue to outperform, drawing capital from a shared investor base that seeks exposure to emerging technologies. The upcoming IPO cycle — with SpaceX, OpenAI and Anthropic expected to go public — is prompting institutions to raise cash and reduce existing positions.

Industry-specific concerns also contributed. Treasury Secretary Scott Bessent's claim that US authorities seized roughly $1 billion of Iranian-linked crypto assets raised questions about government reach into digital asset markets. Strategy's sale of 32 BTC for $2.5 million, while insignificant in supply terms, carried psychological weight from a firm known as the market's most consistent buyer.

On-chain indicators suggest the market has undergone a meaningful reset. Bitcoin's MVRV ratio has fallen to 1.2, near the level where market value converges with investors' aggregate cost basis. The percentage of supply held in profit slipped below 50%, a metric often associated with capitulation. Yet the drawdown — roughly 53% from the October peak of $126,000 — remains shallower than the 75%-90% declines seen in prior cycles, leaving open the question of whether a true bottom has been reached.

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