Bitcoin ETFs Rocked by Outflows as Trump Trade Drama and Profit-Taking Hit Investors

Wall Street's Bitcoin Bets Take a Hit

Hang onto your hats, crypto fans! Last week was a wild ride for spot Bitcoin ETFs in the U.S., with a massive shift in investor sentiment causing a whopping $157.4 million in outflows from May 27-30. Yep, you heard that right - the six-week inflow streak that pumped over $9 billion into these funds? It's over, and it's all thanks to uncertainty around Donald Trump's trade policies and some serious profit-taking.

The Hardest Hit

ARK 21Shares' ARKB got slammed the hardest, with investors yanking out a staggering $281.9 million. Ouch! Fidelity's FBTC wasn't far behind, bleeding $198.8 million. Grayscale's GBTC and Bitwise's BITB also felt the pain, losing $134.4 million and $104.3 million, respectively. Other funds like Invesco's BTCO, Franklin Templeton's EZBC, and VanEck's HODL weren't spared either, with a combined $30.3 million in redemptions.

Not All Doom and Gloom

But wait, it's not all bad news! BlackRock's IBIT managed to pull in a whopping $584.6 million in inflows, showing that some investors still saw the dip as a chance to buy the dip. Grayscale's mini BTC fund and Valkyrie's BRRR also saw some modest inflows, helping to soften the blow a bit.

May's Bullish Run

Despite last week's drama, May still ended on a high note for Bitcoin ETFs overall. The month saw a total of $5.23 billion in net inflows, a massive 75% jump from April. To put that in perspective, February and March had seen net outflows of $3.56 billion and $767.91 million, respectively. May's rebound? It just goes to show how much investors still crave BTC, even with all the short-term market jitters.

Profit-Taking and Macro Worries

So, what caused last week's hit to investor demand? Well, traders were busy locking in profits after BTC's rally to a new all-time high earlier in May. And with June historically being a bearish month for Bitcoin in four of the past six years, many likely decided to cash out some gains before a potential seasonal dip. But that's not all - fresh worries on the macro front didn't help, with the ongoing drama around Trump's trade tariffs resurfacing after two U.S. courts issued conflicting rulings. One said the tariffs were illegal, while the other let them stay in place during the appeal process, which could drag on all the way to the Supreme Court. Talk about uncertainty!

BTC's Price Action

As for BTC's price, it took a 4.3% hit over the past week, briefly dipping to $103,950 on June 2 before bouncing back a bit to around $105,000. But hey, even with the drop, BTC is still only 6.1% off its all-time high of $111,814 from earlier last month.

Expert Insights

Himanshu Maradiya, the founder and chairman of CIFDAQ, told us, "This pullback is healthy, not signaling outright bearishness but more of a pause and consolidation." He added, "Overall, this is not a risk-on environment, but also not one to fear. It's a time for discipline: capital preservation, sharp focus, and readiness to seize opportunities as they arise." Wise words, indeed!