Outflows from US Bitcoin ETFs reached $326 million on June 5. This represents an extension of a devastating trend that has seen billions withdrawn from investments, leaving it with a total of just $75.1 billion in assets under management.
It is seen as a broader reversal that has led to losses of nearly $30 billion in total property market value since the end of May. Its total volume was more than $98 billion at that time. The cumulative market capitalization of cryptocurrencies has fallen by another 2% in the past 24 hours. Bitcoin price It has fallen by more than 16% in the last 7 days. BTC is trading at an average price of $61,343 at press time.
The current pullback trend bears similarities to previous periods of institutional downsizing during Bitcoin bear market phases. Following the approval of spot bitcoin ETFs in the US in January 2024, professional institutional ownership has typically grown across multiple waves of market gains. According to CoinShares data, institutional participation fell by 17% in the first quarter of 2026. This represents the sharpest decline in quarterly ownership since ETFs entered the market.
This is a trend that has been observed before in the context of leveraged players reducing their positions amid sharp price corrections. It enables long-term investors such as investment managers, financial institutions and sovereign wealth funds to acquire stock. Experts point out that even if ETF inflows exacerbate short-term selling, this does not mean the end of the Bitcoin market cycle.
BlackRock IBIT posts the largest outflow of Bitcoin ETFs
BlackRock’s iShares Bitcoin Trust (IBIT) is the largest Bitcoin ETF In terms of assets, I lost $214 million a day, Shows SoSoValue data. Fidelity’s FBTC lost $59.7 million and Grayscale’s GBTC saw $60.8 million out the door. Seven other funds recorded a net change of zero, gaining or losing capital.
Only two ETFs have succeeded in attracting new money. Morgan Stanley’s Bitcoin Trust (MSBT) raised $4.28 million, while VanEck’s HODL fund posted $4.22 million. Both amounts are negligible compared to the total loss for the day.
MSBT was listed on the NYSE Arca exchange in April and was the first bitcoin ETF to be issued by a US bank. Since then, the fund has raised a total of $268 million in net inflows, according to SoSoValue.
The fund’s market appearance amounted to $30.6 million. It has the smallest expense ratio of all its peers.
BTC holdings fell by 17% in the first quarter
CoinShares data shows that quarterly 13F filings show that professional investors have reduced their Bitcoin holdings. It fell by about 52,500 coins in the first quarter. This represents a 17% decline and is the largest decline since US ETFs began trading in January 2024.
Hedge funds and brokerage firms led about 95% of this selling. Morgan Stanley reportedly exited a position worth 8,300 coins before launching its own fund. However, trading firm Jane Street also marked down 10,800 coins.
Banks appear to be moving in the opposite direction. JPMorgan Chase added 3,000 coins, and Wells Fargo got 4,000 coins. Reports indicate that Citigroup has introduced a position in a Bitcoin exchange-traded fund for the first time. Meanwhile, Abu Dhabi’s sovereign wealth fund Mubadala increased its holdings by about 1,100 coins.
The ETF pool has recorded outflows in 14 of the last 15 trading sessions. Cumulative net flows across all US Bitcoin ETFs remain at $53.9 billion. However, the pace of recent recoveries (more than $3.3 billion since late May) is testing whether this number will continue to hold up.
Analysts suggest that Bitcoin may need to fall to $53,000 before the current four-year cycle reaches its lower limit. Meanwhile, the probability of its occurrence is only 25%.
Don’t just read cryptocurrency news. Understand that. Subscribe to our newsletter. It’s free.
