Key highlights:
US-based spot
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.
Source:: US Bitcoin ETFs Endure Bloodbath as Investors Pull $4.5 Billion in Historic June Exit