Investor fear surged as political tensions rattled both crypto and stock markets.
Bitcoin exchange-traded funds in the United States faced $278 million in outflows on 5 June, reversing gains made earlier in the week. The shift followed a public feud between Donald Trump and Elon Musk, sparking wider uncertainty across markets.
The Cryptocurrency Fear & Greed Index dropped to ‘Fear’ on 6 June, as both Tesla and Trump Media shares also fell sharply.
The recent ETF downturn added to previous losses totalling $1.2 billion between 29 May and 2 June. Among the hardest hit was ARK 21Shares Bitcoin ETF, which recorded $102 million in outflows. No Bitcoin ETFs saw any inflows that day, highlighting investor caution.
In contrast, Ether ETFs continued their positive run with $11.3 million in inflows on 5 June, extending a 14-day streak. Although inflows were lower than earlier in the week, interest in Ether remains strong, supported by network upgrades and robust ETH futures activity.
Institutional interest also persists, with BlackRock acquiring $50 million worth of Ether on 3 June. Meanwhile, global Bitcoin ETPs saw net outflows of $8 million over the past week, suggesting that Bitcoin is facing a temporary setback while Ether enjoys relative strength.
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