Bitcoin ETFs bleed on Trump-Musk fallout as sentiment turns to fear

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 BitcoinBTC$103,681ETFs were again hit with outflows on June 5, totaling $278 million,accordingto SoSoValue data.

The outflows came as the Cryptocurrency Fear & Greed Indexflippedfrom “Greed” to “Fear” on June 6, likely in response to therupture 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) sharesplunged14%, while Trump Media (DJT) sharesdropped8%, 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.

GlobalBitcoin exchange-traded products have seen $8 million of outflowsin the past trading week, while EtherETH$2,482ETPs 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 ETFssaw$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 amidimproving network fundamentalsand resilient ETH futures markets.

BlackRock — the world’s largest crypto ETF issuer — purchased $50 million worth of Ether on June 3,accordingto the blockchain analytics platform Arkham.

Magazine:US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow

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