- Bitcoin ETFs saw millions in outflows amid Trump-Musk tensions and market uncertainty.
- JPMorgan Chase plans crypto-collateral loans, signaling growing institutional faith in Bitcoin’s future.
Tensions escalating between former President Donald Trump and tech entrepreneur Elon Musk are impacting the digital asset market, with U.S. Bitcoin [BTC] exchange-traded funds (ETFs) showing signs of strain.
Following a brief recovery earlier in the week, spot BTC ETFs experienced fresh outflows amounting to $278 million on 5th of June, based on SoSoValue data.
Notably, institutional Bitcoin ETF holdings shrank in early 2025, marking their first quarterly decline since the launch of spot ETFs in the U.S., reflecting increased investor caution amid the political turmoil and changing market dynamics.
Bitcoin ETF Q1 report is concerning
For context, institutional interest in Bitcoin took a notable hit in the first quarter of 2025, with holdings dropping from $27.4 billion in Q4 2024 to $21.2 billion, recording a 23% decline, per a CoinShares report.
While much of this downturn was linked to an 11% dip in Bitcoin’s price over the same period, the data also suggests that some institutional investors actively scaled back their positions.
That being said, the report, which draws from SEC filings, highlights a dual narrative of market-driven valuation losses and strategic portfolio adjustments in response to the broader crypto market climate.
Source: CoinShares
In fact, BlackRock’s iShares Bitcoin Trust (IBIT) broke its 31-day inflow streak by recording a $430 million single-day outflow—the largest since inception.
Across just three trading sessions, total BTC ETF outflows touched $1.21 billion, the biggest drawdown in nearly three months.
Etherum ETF gains momentum
In contrast, Ethereum [ETH] ETFs have shown resilience.
According to SoSoValue data, U.S. spot Ether ETFs registered $11.3 million in inflows on the 5th of June, extending a 14-day streak.
However, the figure represents a sharp pullback from earlier highs of $109.4 million and $56.9 million in the preceding days.
Yet, despite recent setbacks in the Bitcoin ETF space, institutional interest in crypto remains strong and is even expanding in unexpected quarters.
Once known for its skepticism toward digital assets, JPMorgan Chase is now reportedly preparing to broaden its offerings by allowing high-net-worth clients to use crypto ETFs as collateral for loans.
This move signals a growing institutional commitment to Bitcoin, suggesting that major financial players still view it as a valuable long-term asset despite short-term volatility.
- Bitcoin ETFs saw millions in outflows amid Trump-Musk tensions and market uncertainty.
- JPMorgan Chase plans crypto-collateral loans, signaling growing institutional faith in Bitcoin’s future.
Tensions escalating between former President Donald Trump and tech entrepreneur Elon Musk are impacting the digital asset market, with U.S. Bitcoin [BTC] exchange-traded funds (ETFs) showing signs of strain.
Following a brief recovery earlier in the week, spot BTC ETFs experienced fresh outflows amounting to $278 million on 5th of June, based on SoSoValue data.
Notably, institutional Bitcoin ETF holdings shrank in early 2025, marking their first quarterly decline since the launch of spot ETFs in the U.S., reflecting increased investor caution amid the political turmoil and changing market dynamics.
Bitcoin ETF Q1 report is concerning
For context, institutional interest in Bitcoin took a notable hit in the first quarter of 2025, with holdings dropping from $27.4 billion in Q4 2024 to $21.2 billion, recording a 23% decline, per a CoinShares report.
While much of this downturn was linked to an 11% dip in Bitcoin’s price over the same period, the data also suggests that some institutional investors actively scaled back their positions.
That being said, the report, which draws from SEC filings, highlights a dual narrative of market-driven valuation losses and strategic portfolio adjustments in response to the broader crypto market climate.
Source: CoinShares
In fact, BlackRock’s iShares Bitcoin Trust (IBIT) broke its 31-day inflow streak by recording a $430 million single-day outflow—the largest since inception.
Across just three trading sessions, total BTC ETF outflows touched $1.21 billion, the biggest drawdown in nearly three months.
Etherum ETF gains momentum
In contrast, Ethereum [ETH] ETFs have shown resilience.
According to SoSoValue data, U.S. spot Ether ETFs registered $11.3 million in inflows on the 5th of June, extending a 14-day streak.
However, the figure represents a sharp pullback from earlier highs of $109.4 million and $56.9 million in the preceding days.
Yet, despite recent setbacks in the Bitcoin ETF space, institutional interest in crypto remains strong and is even expanding in unexpected quarters.
Once known for its skepticism toward digital assets, JPMorgan Chase is now reportedly preparing to broaden its offerings by allowing high-net-worth clients to use crypto ETFs as collateral for loans.
This move signals a growing institutional commitment to Bitcoin, suggesting that major financial players still view it as a valuable long-term asset despite short-term volatility.
