Bitcoin ETFs shed $2.26 billion in two weeks as rate‑hop fears mount

U.S. spot Bitcoin ETFs saw $2.26 billion exit their accounts between June 1 and June 12, with a single week accounting for $1.72 billion of that drain – the second‑largest weekly outflow on record [3]. The bulk of the withdrawals came from BlackRock’s iShares Bitcoin Trust (IBIT), which alone shed $1.337 billion, its biggest weekly redemption since the fund launched in January 2024 [3].

The outflow surge followed the May employment report that added 172,000 jobs, far exceeding expectations and prompting markets to price in a possible Federal Reserve rate hike rather than a cut. Higher‑for‑longer rates increase the opportunity cost of holding a non‑yielding asset like Bitcoin, nudging institutional investors toward Treasury bonds and cash. Analysts linked the payroll data to the redemption wave, describing it as a “positioning reset” rather than a structural exodus [3].

While the outflows were concentrated, the broader ETF complex remains sizable. Total net assets across U.S. spot Bitcoin ETFs sit at $75.12 billion, representing about 6 % of Bitcoin’s market capitalization [3]. Since the first physical Bitcoin ETFs were approved in January 2024, cumulative inflows have topped $60 billion, underscoring the importance of these vehicles as a barometer of institutional sentiment [2]. The recent withdrawals, however, illustrate how quickly that sentiment can shift when macro cues change.

The episode highlights a key risk for Bitcoin’s institutional adoption: reliance on macro‑driven capital flows. If further strong labor data or persistent inflation keep rate‑cut hopes low, more funds may follow IBIT’s lead, testing the resilience of the $75 billion ETF base. Conversely, any easing in rate expectations could see the same funds swing back to inflows, making the next few weeks a litmus test for the durability of institutional demand.