Bitcoin Outflows From Spot ETFs Accelerate as Inflation-Hedging Trades Unwind

According to JPMorgan Chase analysts, Bitcoin spot ETF outflows have accelerated over the past four weeks as of early June, as investors continue to reduce exposure to inflation-hedging trades. Gold ETFs saw outflows of approximately $20 billion during the week ending June 5, while both retail and institutional investors are reducing positions in gold and Bitcoin futures, signaling a broader retreat from assets tied to currency devaluation and geopolitical risks.

The bank noted that Bitcoin had emerged as the primary vehicle for such hedges since Middle East tensions but reversed in early May, with momentum weakening in recent weeks. Declining liquidity in ETF and futures markets has also amplified Bitcoin's price corrections.