Bitcoin and ether fall as spot ETF outflows hit record $2.97B
In brief
- Bitcoin fell to $72,700, down six of last seven days
- Ether lost 1% since midnight UTC on June 1
- Spot bitcoin ETF outflows hit record $2.97B over 10 days
- Hyperliquid HYPE token reached $73.94 on new ETF inflows
- U.S. equity futures gained 0.2%, outpacing crypto weakness
Spot ETFs and Broader Market Pressure
Bitcoin dropped 3.5% in May, a month that typically performs well for the asset. It averages a 7.4% rise in May, according to Coinglass data. The May decline marked a sharp reversal from historical norms.
The outflows from spot bitcoin ETFs signal investor caution. A record 10 days of net withdrawals from spot bitcoin exchange-traded funds saw $2.97 billion leave the investment vehicles, underscoring sustained selling pressure.
Broader crypto indices reflected the downturn. The CoinDesk 20 Index fell 2% since midnight UTC, while the CoinDesk DeFi Select Index dropped 2.6%, with all six members lower.
DeFi Losses and HYPE's Outlier Surge
DeFi tokens took particular damage. Ondo Finance's ONDO token fell 2.8%, and has now lost 17% since founder Nathan Allman died unexpectedly last week. The founder's death added uncertainty to the project at an already volatile moment.
One notable exception emerged. Hyperliquid's HYPE token added 1.26% since midnight, reaching a record high of $73.94. Capital entering newly introduced ETFs based on the token, which started trading only last month, drove the gains. The divergence highlighted how ETF flows can create outsized momentum for newer assets.
Equity Futures Outpace Crypto
Bitcoin and software equities have sharply diverged after moving in lockstep for years, raising questions over whether bitcoin will eventually catch up.
U.S. equity futures both added roughly 0.2%, outpacing crypto weakness. The divergence between traditional markets and digital assets reflected differing risk appetites heading into the month. June kicked off in the red for crypto markets as the U.S. and Iran exchanged fire and peace talks failed, adding geopolitical headwinds to the sector's decline.
