Wall Street Hit the Sell Button, Crypto Whales Hit Snooze Bar

US-listed spot Bitcoin exchange-traded funds recorded $4.5 billion in net outflows during June, the worst monthly figure since the products launched in January 2024, according to SoSoValue data. The redemptions eclipsed the previous monthly record of $3.56 billion set in February 2025 and coincided with Bitcoin (BTC) falling 20.48% over the month, its steepest monthly drop since June 2022, when the asset shed 37.28%. BlackRock's iShares Bitcoin Trust (IBIT) accounted for roughly 79% of June's withdrawals, posting $3.55 billion in net outflows, per Farside Investors. Galaxy Research separately reported $6.35 billion in net outflows over a trailing 30 trading days, the largest 30-day net outflow on record and the highest figure across all 582 rolling 30-day windows it tracks since the funds began trading in January 2024. Weekly outflows peaked at $1.79 billion in the week ending June 26 before easing to about $226 million the following week, an 87% drop from the early-June peak.

June's losses brought year-to-date net outflows to roughly $5.4 billion, reducing cumulative net inflows since launch to about $51.2 billion from a peak of $63 billion in October 2025. Total net assets in US spot Bitcoin ETFs fell below $73 billion for the first time since late 2024, down roughly 57% from a record $169.5 billion in October 2025. Strategy, the world's largest corporate Bitcoin holder, bought roughly 3,600 BTC in June, down from about 25,000 BTC in May and more than 50,000 BTC in April, according to company filings, while STRC, its perpetual preferred stock, closed at $75.69 on Thursday, down 6.37%. BlackRock US head of equity ETFs Jay Jacobs told Cointelegraph that daily outflows can reflect flows between products rather than a change in conviction. "What I think is maybe sometimes misunderstood by the market is that if we see a day of outflows, there could be a million reasons why. It could be someone selling IBIT and buying BITA," Jacobs said, referring to the iShares Bitcoin Premium Income ETF (BITA), which launched on Wednesday. "Every asset class has volatility… we have over 450 exchange-traded funds within iShares," he added. "So in the short term, it's absolutely not something that changes the way we view the asset or the utility of the asset."

On-chain analysts pointed to mounting signs of seller exhaustion alongside the ETF bleed. Santiment reported Bitcoin ETFs have logged $8.475 billion in total net outflows since May 6, writing that "the bigger this streak of BTC outflows gets, the more we can reliably identify this stretch as frustration, fear, and retail capitulation rather than a fresh reason to panic." Glassnode data showed roughly 10.83 million BTC now sit at a loss versus 9.22 million in profit, while analyst Darkfost highlighted Bitcoin's Net UTXO Supply Ratio turning negative at -0.075, matching a level last seen at the end of the 2022 bear market. CryptoQuant data showed large holders accumulated more than 270,000 BTC (about $16.7 billion) over the prior two weeks even as US spot demand remained weak, with crypto exchange Bitfinex analysts calling the divergence "a familiar one" near past cycle lows.

The selling slowed in early July. US spot Bitcoin ETFs attracted $221.7 million in net inflows on July 2, their first daily intake above $200 million since early May, snapping a 10-day streak of net outflows that had drained more than $2.7 billion from the funds. Fidelity's Wise Origin Bitcoin Fund (FBTC) led with $165.96 million, followed by ARK 21Shares Bitcoin ETF (ARKB) at $91.84 million, VanEck Bitcoin ETF (HODL) at $4.4 million and Valkyrie Bitcoin Fund (BRRR) at $1.7 million. BlackRock's IBIT continued to bleed, posting $40.43 million in outflows that extended an 11-session streak totaling more than $2.2 billion. Three days later, IBIT recorded $209.4 million in inflows on July 7, its first significant positive move after weeks, according to Farside Investors. Spot Bitcoin funds pulled roughly $510 million over three sessions through Wednesday, with James Butterfill, head of research at 21Shares, telling Decrypt that "it looks like sentiment might be turning a corner."

The catalyst was a softer US economic picture. The government's June jobs report showed 57,000 nonfarm payrolls added, well below the roughly 110,000 forecast, while Federal Reserve Chair Kevin Warsh signaled that inflation risks had eased. Tim Sun, senior researcher at HashKey, said persistent outflows had reflected the market's "pricing-in of further rate hikes," which lifted the dollar and real yields against non-yielding Bitcoin, while the weak payrolls print has been "weakening the market's anticipation of further rate hikes." Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt that Warsh's comments "improved overall market sentiment," driving inflows to Bitcoin ETFs and sparking Bitcoin's rebound over $61,000. Spot Bitcoin ETFs closed the week ending July 10 with $197.40 million in net inflows, the first weekly inflow in nine weeks, while Ethereum (ETH) ETFs added $84.42 million in the same span. Bitcoin traded near $62,000, having rebounded from a 21-month low below $58,000 earlier in the month, with analysts cautioning that the bounce is "only a temporary recovery after the easing of interest rate pressure" and that renewed US-Iran tensions remain a key variable for the weeks ahead.