Bitcoin ETFs Hit First Speed Bump: $6B Flees—What Spooked the Bulls?

Wall Street's crypto honeymoon hits a snag as Bitcoin ETFs post their maiden outflow. The $6 billion retreat marks a reality check for the 'easy money' crowd.

Blame profit-taking, macro jitters, or just traders being traders—either way, the dip buyers just got fresh meat. Remember when 'this time is different'? Neither do we.

Bitcoin ETF Q1 report is concerning

For context, institutional interest in Bitcoin took a notable hit in the first quarter of 2025, with holdings dropping from $27.4 billion in Q4 2024 to $21.2 billion, recording a 23% decline, per a CoinShares report.

While much of this downturn was linked to an 11% dip in Bitcoin’s price over the same period, the data also suggests that some institutional investors actively scaled back their positions.

That being said, the report, which draws from SEC filings, highlights a dual narrative of market-driven valuation losses and strategic portfolio adjustments in response to the broader crypto market climate.

Source: CoinShares

In fact, BlackRock’s iShares Bitcoin Trust (IBIT) broke its 31-day inflow streak by recording a $430 million single-day outflow—the largest since inception.

Across just three trading sessions, total BTC ETF outflows touched $1.21 billion, the biggest drawdown in nearly three months.

Etherum ETF gains momentum

In contrast, ethereum [ETH] ETFs have shown resilience.

According to SoSoValue data, U.S. spot Ether ETFs registered $11.3 million in inflows on the 5th of June, extending a 14-day streak.

However, the figure represents a sharp pullback from earlier highs of $109.4 million and $56.9 million in the preceding days.

Yet, despite recent setbacks in the Bitcoin ETF space, institutional interest in crypto remains strong and is even expanding in unexpected quarters.

Once known for its skepticism toward digital assets, JPMorgan Chase is now reportedly preparing to broaden its offerings by allowing high-net-worth clients to use crypto ETFs as collateral for loans.

This MOVE signals a growing institutional commitment to Bitcoin, suggesting that major financial players still view it as a valuable long-term asset despite short-term volatility.