Bitcoin exchange-traded funds (ETFs) in the United States turned red amid worsening sentiment stemming from an ongoing feud between US President Donald Trump and billionaire Elon Musk.
After a brief recovery on June 3-4, US spot Bitcoin (BTC) ETFs were again hit with outflows on June 5, totaling $278 million, according to SoSoValue data.
The outflows came as the Cryptocurrency Fear & Greed Index flipped from “Greed” to “Fear” on June 6, likely in response to the rupture of the previously close relationship between Trump and Musk, which has played out in multiple explosive social media posts.
The sentiment shift is not exclusive to Bitcoin and crypto, with many investors spooked by the feud. Tesla (TSLA) shares plunged 14%, while Trump Media (DJT) shares dropped 8%, according to TradingView.
Bitcoin ETFs already struggling
The latest outflows from US spot Bitcoin ETFs followed a two-day recovery coming after a series of outflows from May 29 to June 2, totaling $1.2 billion in just three trading days.
Global Bitcoin exchange-traded products have seen $8 million of outflows in the past trading week, while Ether (ETH) ETPs topped inflows at $321 million.
According to SoSoValue, ARK Invest’s ARK 21Shares Bitcoin ETF(ARKB) led the exodus on June 5 with a massive $102 million in outflows. None of the funds saw inflows on that day.
Ether ETFs shaken but still on inflow streak
While Bitcoin ETFs flipped to outflows amid the Trump-Musk feud, Ether ETFs continued to see inflows on Thursday.
According to SoSoValue, US spot Ether ETFs saw $11.3 million of inflows on June 5, marking 14 consecutive days of inflows. Still, yesterday’s inflows were a noteworthy drop from $56.9 million of inflows on June 4 and $109.4 million of inflows on June 3.
Related: Trump Media files for spot Bitcoin ETF approval from SEC
Ether ETPs have attracted attention amid improving network fundamentals and resilient ETH futures markets.
BlackRock — the world’s largest crypto ETF issuer — purchased $50 million worth of Ether on June 3, according to the blockchain analytics platform Arkham.
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