As the dispute between US President Trump and billionaire Elon Musk escalated, US Bitcoin exchange-traded funds (ETFs) fell into a state of capital outflow.
After a brief rebound on June 3 and 4, the US spot Bitcoin ETF faced another capital outflow of $278 million on Thursday, according to SoSoValue data.
This capital outflow caused the cryptocurrency fear and greed index to shift from 'greed' to 'fear' on June 6, which may be a response to the sudden breakdown of the previously close relationship between Trump and Musk, as both sides erupted in a heated argument on social media.
This shift in sentiment has not only affected Bitcoin and cryptocurrencies, but many investors are feeling panic due to disputes. According to TradingView data, Tesla (TSLA) shares fell by 14%, while Trump Media (DJT) shares decreased by 8%.
Bitcoin ETF facing difficulties
On June 5, as ARK Invest's ARK 21Shares Bitcoin ETF (ARKB) experienced a capital outflow of $102 million, there was no capital inflow for Bitcoin ETFs in the market.
Global Bitcoin exchange-traded products saw a capital outflow of $8 million last week, while Ethereum products (ETP) recorded a capital inflow of $321 million.
Ethereum ETF continues to strengthen
Despite the outflow from Bitcoin ETFs due to disputes, the Ethereum ETF still had an inflow of $11.3 million on June 5, marking 14 consecutive days of inflows. However, this is a decline compared to the inflow amount of $56.9 million on June 4 and $109.4 million on June 3.
The capital focus on Ethereum has increased, primarily due to improvements in the network's fundamentals and a robust Ethereum futures market. The world's largest crypto ETF issuer, BlackRock, purchased $50 million worth of Ether on June 3.
