Bitcoin ETFs Bleed $2.1B in June Amid Deepening Market Meltdown

The crypto market sentiment continues to be bleak as spot Bitcoin ETFs persist in losing funds amid a tough macroeconomic and geopolitical environment.

Bitcoin ETFs have pulled out $2.1 billion in June to date, keeping pace with May’s $2.4 billion in outflows, according to SoSoValue data. Wednesday’s $214 million outflow confirms the pattern remains steady even after June 4’s brief inflow interrupted a 13-day losing streak that pulled around $4.4 billion from these funds.

Since May 10, total net assets have fallen by approximately $33 billion from $109 billion to $77 billion, tracking Bitcoin’s 27% slide from its May 10 high of $81,443 down to $59,353.

Despite the ongoing negative trend, the pace of ETF outflows has “slowed considerably,” Adam Haeems, head of asset management at Tesseract Group, told Decrypt. “The pressure hasn’t fully leveled off yet, but it’s tapering off rather than escalating.”

Behind the ETF curtain

According to Haeems, three factors are driving the outflow streak: leveraged funds cashing out shares after arbitraging spot ETFs against futures, investors shifting away from the highest-fee fund among U.S. spot products—which has now lost nearly $27 billion since launch—and money moving into AI equities and upcoming tech IPOs.

“The first two reasons are technical and will naturally run their course. The third is the one we keep an eye on, because it reflects shifting investor sentiment rather than structural issues,” he explained. “Several other funds saw net inflows on Monday even as the overall picture stayed negative, which shows the selling is focused rather than widespread.”

The outflows are largely fueled by uncertainty tied to the ongoing U.S.-Israel conflict with Iran, now in its 103rd day. The war has driven oil prices sharply higher, creating significant volatility affecting energy prices and U.S. inflation data.

Annual inflation climbed from 3.8% to 4.2% in May, adding to the Federal Reserve’s challenges. The central bank has held interest rates steady between 3.50% and 3.75% for the past six months.

“While the higher-than-expected CPI reading isn’t great for risk assets like Bitcoin, I don’t think it materially alters the market outlook,” Robin Singh, CEO of Koinly, told Decrypt.

For the ETF outflows to stop, he said, “we need to see genuine demand emerge and Bitcoin push back solidly into the $70,000 range.” Once Bitcoin begins showing consistent strength and regaining investor focus, “ETF flows are expected to follow suit,” he added.

Haeems sees it differently. “What will end the outflows is a change in interest rate expectations, not just a price bounce,” he argued. “The carry trade needs favorable conditions to restart, and institutional buyers need to see expectations for rate hikes diminish.”

Not all inflation figures trended upward. Month-over-month core CPI eased to 0.2%, which “the bond market viewed as a welcome relief,” Haeems noted.

Bitcoin’s quarter-end outlook

Bitcoin has gained 1.5% over the past 24 hours and is trading around $62,560, based on CoinGecko data.

Derivatives data indicate that total open interest has kept rising after the weekend selloff, supporting Bitcoin’s rebound to $63,000. The Coinbase Premium index remains below zero but has improved significantly compared to early June levels, according to Velo data.

Experts remain divided on Bitcoin’s

quarter-end outlook.

While Singh maintains a bearish stance and acknowledges the possibility of a decline toward the $50,000 level, Haeems adopts a more cautious outlook, anticipating that capital flows will settle before any significant price movement occurs.

“The market has spent the past week holding the 200-week moving average, and in our view, a fragile foundation forming around that level seems far more likely than a strong rebound,” Haeems explained. “The first significant technical recovery levels are positioned well above current prices, and next week’s Federal Reserve meeting stands out as the key event that could drive movement in either direction.”

Haeems pointed out the uneven risk-reward dynamic in the current market setup.

“A clear breakdown below $60,000 would expose significantly more downside potential than any upside available from a temporary relief rally,” he noted. “If the June inflation data reveals energy costs spilling over into core inflation, expectations for rate hikes will strengthen, and the sideways trading range will persist. However, if core inflation remains contained, the back half of the year could shape up more favorably than the remainder of June.”

On Myriad, a prediction market operated by Decrypt‘s parent company Dastan, participants lean toward the bearish scenario, assigning a 71% probability that the next major move will push prices down to $55,000 rather than up to $84,000.