Bitcoin ETFs are experiencing a record weekly series of outflows: what is behind the panic?
American spot Bitcoin ETFs have completed their sixth consecutive week with negative results. As of June 18, net capital outflows amounted to $90.66 million. This continues the prolonged correction that began in mid-May.
Over the past month and a half, a total of $5.94 billion has been withdrawn from these instruments. This is the longest streak of negative dynamics since the launch of ETFs on the underlying asset. Investors are clearly reassessing their priorities, and this is not just temporary panic.
The key catalyst for the outflow has been the shift of capital into stocks of companies related to artificial intelligence. The market has shifted its focus in anticipation of major initial public offerings, such as the OpenAI IPO. This is a classic example of sector rotation: when one segment overheats, capital moves to another that is more promising at the moment.
Nevertheless, the pace of withdrawals is gradually slowing. While at the beginning of June weekly outflows exceeded $1.7 billion, by mid-month they had decreased to $226 million. This indicates that the wave of selling is nearing its end. A significant portion of the outflows is caused by the closing of arbitrage trades, rather than a decline in demand for Bitcoin itself as an asset. Long-term investors, including pension funds, continue to hold their positions, confirming the absence of fundamental panic.
The price of Bitcoin has stabilized around $64,000. However, pressure from macroeconomic factors persists. The "hawkish" stance of the new Fed Chairman Kevin Warsh, who confirmed the intention to reduce inflation to 2%, is having a negative impact on risk assets. Until monetary policy eases or clear positive drivers emerge in the crypto industry, quotes are likely to remain in a sideways trend.
Notably, even amid the outflows, BlackRock in June launched the iShares Bitcoin Premium Income ETF on Nasdaq, which combines exposure to the spot price of Bitcoin with active selling of covered call options. This is a signal: institutions are not abandoning the strategy but are adapting to current volatility.
My comment: The current situation is not a crash but a structural market restructuring. Outflows from ETFs are not a flight from Bitcoin but a temporary rotation of capital into "hotter" sectors. As soon as the macroeconomic backdrop becomes more favorable, we will see a return of funds. For now, the market is waiting for a signal from the Fed or a new catalyst within the industry.