US Bitcoin ETFs Endure Bloodbath as Investors Pull $4.5 Billion in Historic June Exit

US-based spot Bitcoin exchange-traded funds (ETFs) recorded their worst month since their debut in January 2024, sparking fears of prolonged bearishness for the largest cryptocurrency. Investors pulled $4.5 billion from bitcoin ETFs in June, dwarfing the previous record by a staggering 29%.

Bitcoin ETFs bleed out as macroeconomic uncertainty rises

According to SosoValue data, US spot bitcoin ETFs shed $4.5 billion in June, setting a new record as the worst month for the asset class. At current prices, the figure represents the exit of over 76,000 BTC from the balance sheets of bitcoin ETFs.

Per the data, nine straight days of redemptions at the end of July saw outflows surge to previously unseen levels. Previously, February 2025 held the record after bitcoin ETFs saw outflows top $3.48 billion.

June 25 marked the worst trading day with outflows reaching a peak of $696 million. US spot bitcoin ETFs only recorded three days of positive net inflows in June, totalling a paltry $98 million. 

Source: SosoValue

BlackRock’s IBIT bore the brunt of the losses, shedding a staggering $3.55 billion in June alone. On the last day of June, IBIT recorded $212.45 billion in outflows to wrap up a torrid month.

Pundits noted that the biggest driver for the ETF outflows is the Federal Reserve’s hawkish stance toward a rate cut. The falling chances of a near-term rate cut saw investors reduce exposure to Bitcoin amid fears of a prolonged bear market.

Meanwhile, SpaceX's record-breaking IPO saw billions in risk capital flow toward high-growth technology plays, reducing interest in spot bitcoin ETFs. 

At the core of the staggering ETF outflows is falling Bitcoin prices as investors panic sell and institutions rebalance their portfolios. Bitcoin is trading below the $60K mark, its worst level since 2024.

Citi cuts Bitcoin and Ethereum targets over ETF inflow decline

Amid the ETF bloodbath, Citigroup has slashed its 12-month forecast for BTC and ETH. The bank shared the revised prediction in a note to investors on Tuesday, noting that both assets will finish the year lower than anticipated. 

Citing negative ETF fund flows, the brokerage cut its estimate for BTC from $112,000 to $82,000. Meanwhile, it also tapered its ETH forecast to $2,240 from previous estimates of $3,175. 

Furthermore, Citigroup’s analysts opined that the outflows will continue for ETFs, with the bank revising its 12-month net ETF inflow to zero. Previous forecasts tipped ETFs to rake in at least $10 billion in cumulative inflows in 2026.

Meanwhile, Citigroup noted that the snail’s pace of crypto legislation in the US contributed to its downward forecast revision. Also, fears of bitcoin treasury companies selling their assets to meet shareholder obligation has impacted Citigroup’s new estimates.