U.S. spot Bitcoin ETFs suffered a sharp reversal on June 5, bleeding $278 million in outflows as investor sentiment soured amid a very public feud between President Donald Trump and Elon Musk. The fallout triggered a wider market reaction, with Tesla (TSLA) down 14% and Trump Media (DJT) falling 8%, further compounding investor uncertainty.
Key ETF Flow Developments
- Bitcoin ETF Outflows: $278 million on June 5
- Ether ETF Inflows: $11.3 million on June 5 (14-day streak continues)
- Fear & Greed Index: Flipped from Greed to Fear on June 6
- Top BTC ETF Outflow: ARK 21Shares (ARKB) saw $102M in outflows
- Weekly BTC ETP Outflows: $8 million globally
- ETH ETP Inflows (Week): $321 million
- BlackRock Buys: $50 million worth of ETH on June 3
Sentiment Shifts, Market Wobbles
The Cryptocurrency Fear & Greed Index — a widely watched market sentiment gauge — has swung back into “Fear” for the first time in over a month. This reversal coincided with the intensifying rift between Trump and Musk, whose previous alignment had inspired confidence in crypto and tech-related assets.
Bitcoin ETFs were already on shaky ground following $1.2 billion in outflows between May 29 and June 2. The brief recovery on June 3–4 now appears short-lived, with no Bitcoin ETF reporting any inflows on June 5.
Ether’s Resilience Amid Chaos
In contrast, Ether ETFs have continued to attract capital, bolstered by stronger fundamentals and increased institutional interest. Although inflows slowed to $11.3M on June 5 (from $109.4M on June 3), the consistency of demand signals growing investor confidence in Ethereum’s ecosystem.
Notably, BlackRock, the world’s largest crypto ETF issuer, added $50 million worth of ETH to its portfolio earlier in the week — a bullish signal even as Bitcoin markets struggle.
Outlook: Caution Prevails, Divergence Grows
While Ether maintains momentum, Bitcoin ETFs are struggling under the weight of political uncertainty, macro volatility, and shifting sentiment. The rift between two of crypto’s most influential public figures has unnerved investors and underscores the fragility of market psychology in the digital asset space.
If sentiment fails to recover, more outflows could follow — particularly if the broader macro or regulatory landscape deteriorates.
