Citi says weak investor demand and persistent ETF outflows are weighing on Bitcoin more than Strategy’s recent BTC sale.
Bitcoin News
US-listed spot Bitcoin (BTC) exchange-traded funds (ETFs) have logged their longest run of outflows on record. The streak reached 13 straight trading days on June 3. Demand for the funds has continued to soften.
The funds shed $396.6 million on June 3 alone. That brought total withdrawals to about $4.4 billion since the streak began, according to SoSoValue data. The run now tops the prior record of eight straight days set in February 2025, when roughly $3.2 billion left the funds.
The sell-off has tracked a steep price drop. Bitcoin has fallen about 21% since May 15, sliding from roughly $80,000 to about $63,400. It briefly dipped below $63,000 on June 4.
Source: CoinMarketCap
Several pressures may be feeding the decline. Analysts have cited weaker ETF demand, selling by long-term holders, and strain on miners as possible drivers.
BlackRock's IBIT Drives the Outflows
One fund accounts for most of the bleed. BlackRock's iShares Bitcoin Trust (IBIT) saw about $3.3 billion in outflows over the 13 days, according to Farside Investors data. That figure accounts for roughly 75% of all withdrawals in the streak.
Two other funds trailed well behind. Fidelity's Fidelity Wise Origin Bitcoin Fund (FBTC) lost about $456.6 million, while Grayscale's Grayscale Bitcoin Trust ETF (GBTC) shed roughly $303.6 million.
The 30-day picture is larger. US spot Bitcoin ETFs have given up 51,726 BTC over that span, or nearly $5 billion. As of June 2, IBIT held about 786,800 BTC, ahead of FBTC at 181,770 BTC and GBTC at 146,400 BTC.
Analysts Split on the Demand Slump
The drop in demand has been sharp. It compares to the contraction after the Terra/Luna collapse in 2022, according to CryptoQuant head of research Julio Moreno. He said overall demand fell by about 501,000 BTC in the past month, the fastest monthly drop since May 2022.
Source:Julio Moreno
Observers disagree on the cause. Bloomberg ETF analyst Eric Balchunas said large institutional buyers, including Bitcoin ETFs and Michael Saylor's Strategy, have remained net accumulators. "Forget the boomers, someone needs to 'call the OGs' — they are behind this," Balchunas said.
Other commentary points to the derivatives market. Some analysts argue that limited on-chain selling suggests leverage and liquidations are amplifying the swings. CryptoQuant founder Ki Young Ju said recent selling by early holders and miners reflects a transfer of supply to US institutions, and he said that shift could support demand over the long term.
Not everyone reads the data as weak. Standard Chartered’s head of digital assets research, Geoffrey Kendrick, said in a June 4 statement that ETF holdings have remained broadly stable since February. He said that points to more structural resilience than expected. Kendrick added that recent corporate selling, including Strategy's sale of 32 BTC, fits the bearish short-term narrative and came at an unfortunate time.
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