Bitcoin ETFs Face Record $4.1 Billion June Outflow

This article first appeared on GuruFocus. US-listed Bitcoin (BTC-USD) exchange-traded funds are facing a sharp investor retreat, with the 13 funds on track for their worst month of withdrawals since launching in January 2024. Investors have pulled more than $4.1 billion from the products in June, according to Bloomberg-compiled data, while BlackRock’s IBIT accounted for $3 billion of those outflows. The move suggests traditional investors could be turning more defensive toward Bitcoin exposure, especially as ETF buyers who previously stepped in during corrections now appear to be reducing risk. Bitcoin is also on pace for its weakest monthly performance since June 2022, the period marked by a wave of crypto business failures that eventually led to the collapse of Sam Bankman-Fried’s FTX. The token has fallen more than 18% this month and was hovering around $60,000 after dropping through that level last week. Glassnode analysts noted that the size and duration of the ETF withdrawals suggest traditional investors remain cautious, adding that this correction looks different from earlier pullbacks because ETF demand has not offset the selling pressure. Strategy (NASDAQ:MSTR), formerly MicroStrategy, has also come under pressure as concerns build around its Bitcoin-heavy balance sheet. Bitcoin’s latest selloff was sparked after Strategy sold $2.5 million worth of its roughly $50 billion Bitcoin holdings, a small sale that still carried symbolic weight for the market. IG Australia analyst Tony Sycamore said Strategy’s preferred stock vehicle STRC fell 24.67% last week to $74.57, as investors worried the company may need to sell some Bitcoin to meet convertible note maturities and dividend obligations, while Bitcoin traded around $60,000 Monday morning in New York, down more than 50% from its October peak last year.



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