Bitcoin ETFs Plunge $278M Amid Trump-Musk Feud — What’s Next for Crypto?

Bitcoin ETF Outflows Surge—Investors React to High-Profile Feud and Market Fears

Bitcoin ETFs – The U.S. Bitcoin exchange-traded funds (ETFs) experienced notable outflows after a brief recovery, driven by deteriorating market sentiment linked to the ongoing public feud between U.S. President Donald Trump and billionaire Elon Musk. According to SoSoValue data, spot Bitcoin ETFs recorded outflows totaling $278 million on June 5, following a prior recovery between June 3-4.

Market Sentiment Shifts: Fear Replaces Greed

The Cryptocurrency Fear & Greed Index flipped from “Greed” to “Fear” on June 6, reflecting heightened investor anxiety over the fallout between Trump and Musk, which unfolded through a series of explosive social media posts. The feud’s impact extended beyond crypto, causing shares of Tesla (TSLA) to plunge 14% and Trump Media (DJT) to fall 8%, per TradingView data.

Bitcoin ETFs Struggle with Renewed Outflows

This recent wave of outflows adds to a broader downtrend, following a significant $1.2 billion outflow from May 29 to June 2 over three trading days. Globally, Bitcoin exchange-traded products saw a modest $8 million outflow last week, while Ether products experienced substantial inflows totaling $321 million.

Among Bitcoin ETFs, ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) led the outflow on June 5, with a massive $102 million withdrawal. None of the Bitcoin ETFs recorded inflows on that day.

Ether ETFs Defy Market Pressure with Consistent Inflows

In contrast, Ether (ETH) ETFs maintained a steady inflow streak, with $11.3 million flowing in on June 5, marking 14 consecutive days of inflows according to SoSoValue. Although inflows dropped compared to $56.9 million on June 4 and $109.4 million on June 3, Ether products continue to attract investors amid improving network fundamentals and a resilient ETH futures market.

Highlighting confidence in Ether, BlackRock, the world’s largest crypto ETF issuer, reportedly purchased $50 million worth of Ether on June 3, based on data from blockchain analytics platform Arkham.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.