Spot Bitcoin and Ethereum exchange-traded funds (ETFs) recorded their first inflows in weeks on June 4, ending extended periods of outflows. Combined inflows reached $22.4 million, with Bitcoin funds adding $3.05 million and Ethereum funds bringing in $19.3 million, according to SoSoValue data.
The gains followed 13 consecutive days of outflows for Bitcoin ETFs and 17 straight sessions for Ethereum products. Despite the reversal, the rebound remains modest compared to the broader withdrawal trend. Over the prior 13 sessions alone, spot Bitcoin funds saw more than $4.4 billion in net outflows, making the latest inflow statistically small and insufficient to signal a shift in trader sentiment.
Prices remain under pressure as demand weakens
The broader crypto market continued to struggle, with Bitcoin trading near $62,300 and Ethereum hovering around $1,660. Market data suggests that the issue is not excess supply but weakening demand.
CryptoQuant analysis shows Bitcoin’s realized cap has dropped by around $40 billion, indicating capital is leaving the network. At the same time, the Coinbase premium has remained negative, reflecting subdued demand from U.S.-based institutional participants.
Trading activity also points to pressure building in the market. Over the nine days leading into June 4, Bitcoin recorded more than $584 million in volume and 433,000 transactions, even as prices declined. The downturn accelerated after Strategy disclosed a 32-Bitcoin sale, marking its first net reduction following a long accumulation phase.
Shift toward equity-linked derivatives gains pace
A notable rotation in market activity is underway, with traders moving away from crypto-linked perpetual futures. Block Scholes data shows daily volumes in Bitcoin and Ethereum perpetual futures falling to roughly $2 billion and $600 million to $700 million, respectively.
In contrast, perpetual futures tied to traditional markets—such as the Nasdaq-100, S&P 500, and WTI crude oil—have gained traction. These contracts reached $1.3 billion in daily turnover and $27.1 billion in notional monthly volume, surpassing Ethereum’s perpetual trading activity.
This shift has also extended to pre-IPO derivatives. Contracts linked to SpaceX, for example, have grown sharply, with daily trading volumes rising from under $5 million to approximately $50 million. Analysts describe the trend as a reallocation of market flows toward equity-linked opportunities rather than a direct exit from digital assets.
Competition from equities and macro conditions intensify
The rotation comes as equity markets, particularly those driven by artificial intelligence narratives, attract capital seeking growth opportunities. At the same time, elevated global bond yields are offering comparatively lower-risk alternatives.
According to market observers, liquidity conditions have tightened as new Bitcoin supply entering the market outpaces available demand. This environment has coincided with reduced risk appetite across both retail and institutional segments.
Equities delivered mixed signals ahead of the weekend. The Nasdaq slipped 0.2% after Broadcom, despite posting strong results, maintained its 2027 AI revenue forecast, triggering a 14% drop in its shares and weighing on semiconductor stocks.
Lower oil prices provided some support to markets following political developments tied to U.S.–Iran relations.
Focus shifts to U.S. jobs data and Fed outlook
Traders are now closely watching the upcoming U.S. non-farm payroll report, which is expected to show 85,000 new jobs in May and an unemployment rate of 4.3%.
The data is likely to shape expectations for Federal Reserve policy. Futures markets are currently pricing in slightly better-than-even odds of at least one rate increase before year-end.
A stronger-than-expected report could reinforce expectations of tighter monetary policy, while weaker data may alter the Fed’s trajectory, adding further uncertainty to both crypto and broader financial markets.
Want to understand how ETFs shape bitcoin’s price cycles? Explore our guide on ETF market dynamics for clearer trading insights.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
