Bitcoin ETF Struggles Amid Trump and Musk Feud
The US Bitcoin Exchange Traded Fund (ETF) has taken a downturn recently, fueled by heightened emotions resulting from the ongoing clash between President Donald Trump and billionaire Elon Musk. After a brief recovery from June 3 to June 4, the ETF experienced another setback on June 5, with losses totaling $278 million.
This drop coincided with a significant shift in the cryptocurrency market’s sentiment—moving from “greed” to “fear” on June 6, which seems to reflect the escalating tensions between Trump and Musk, evident in their fiery exchanges on social media.
Interestingly, this emotional turmoil isn’t just limited to Bitcoin. Tesla’s stock fell by 14%, while shares in Trump Media declined by about 8% according to TradingView data, leaving many investors taken aback.
Bitcoin ETF Faces Challenges
This recent dip follows a two-day recovery after a wave of losses from May 29 to June 2, where a total of $1.2 billion was wiped out in just three days. In the last week, global Bitcoin Exchange Trade Products reported $8 million in outflows, while Ether (ETH) exchange-traded products saw inflows surpassing $321 million.
Data from SosoValue indicates that Ark Invest’s Ark 21Shares Bitcoin ETF stood out on June 5, recording a $122 million outflow, with no funds flowing in that day.
Ether ETF Remains Resilient
While the Bitcoin ETF grapples with losses amidst the feud between Trump and Musk, the ether ETF appears to be holding steady. On June 5, the US spot Ether ETF reported an influx of $11.3 million, marking the 14th consecutive day of inflows. However, this was a significant decrease compared to the $56.9 million seen on June 4 and a hefty $109.4 million on June 3.
Interestingly, the Ether ETP continues to gain traction, bolstered by improvements in the network’s fundamentals and a robust ETH futures market. On June 3, BlackRock, the world’s largest crypto ETF issuer, purchased $50 million worth of ether, according to blockchain analytics platform Arkham.
Related: Trump’s Media Files for Spot Bitcoin ETF Approval from SEC
