Institutional interest in Bitcoin ($BTC) appears to be cooling, as US-listed spot Bitcoin exchange traded funds (ETFs) recorded $268 million in net outflows on Monday.
This marks the third straight day of capital withdrawals from these products, indicating a cautious turn among major investors.
Bitcoin has been trading in a tight range around the $105,000 mark, which many see as a consolidation phase.
This price stagnation seems to be dampening institutional sentiment, prompting a rotation of capital out of BTC-linked products.
According to data from SosoValue, the latest pullback in ETF flows reflects a textbook market reaction to a lull in price momentum. When Bitcoin stalls, institutional players often shift capital into alternative assets or move temporarily to risk-off positions.
BlackRock’s iShares Bitcoin Trust (IBIT) led the way in Monday’s outflows, recording $130.4 million in withdrawals. Despite this, IBIT’s total cumulative inflows remain strong at $48.44 billion.
ARK Invest’s ARKB came in second with nearly $74 million withdrawn. Fidelity’s FBTC and Grayscale’s GBTC also recorded outflows of $50.11 million and $16.47 million, respectively.
The 30th of May saw a total net outflow of over $616.22 million across Bitcoin ETFs, underscoring a broader pause in institutional buying.
This behaviour, while concerning to some, is not unusual. Price consolidation periods often lead to capital reallocation strategies, and ETFs are among the first to reflect such sentiment shifts.
Bitcoin’s price did inch up slightly over the past 24 hours and currently trades at $105,422, a 1% rise on the day.
However, it remains 4% down on the week. Trading volume has reached $43.88 billion, reflecting ongoing market engagement despite the apparent slowdown in institutional ETF flows.
Yet, there is still a degree of bullishness in the derivatives market. The funding rate for Bitcoin futures stands at 0.0038%, indicating positive sentiment. This suggests that long-position holders are paying shorts, a sign of market optimism.
There has also been strong demand for call options – contracts that bet on future price increases – pointing to expectations of a potential breakout.
Ethereum ETFs see continued inflows
While Bitcoin-linked ETFs have been bleeding capital, Ethereum ($ETH) is quietly gaining traction among institutional investors. On Monday, Ethereum-linked ETFs reported net inflows of $78.17 million, extending their winning streak to 11 consecutive trading sessions.
In the past week alone, these products have attracted $321 million in fresh capital – the largest weekly inflow since December.
BlackRock’s Ethereum ETF (ETHA) was the standout performer, drawing in $48.40 million in the latest session. ETHA now boasts cumulative inflows of $4.65 billion.
Fidelity’s FETH was the only other Ethereum-linked ETF to report activity on the day, pulling in close to $30 million.
Ethereum’s rising profile comes at a time when its market price has also shown significant movement. ETH surged more than 5% in the last 24 hours, climbing to a high of $2,650.18 before easing slightly to trade at an average of $2,607 at press time.
This recent upswing has not gone unnoticed, especially as the broader altcoin market follows Ethereum’s lead.
The divergent paths of BTC and ETH ETFs are telling. With Bitcoin trapped under a psychological and technical resistance, Ethereum is increasingly being seen as a high-conviction bet.
Institutional investors appear to be rotating exposure towards ETH as its use cases and upgrades continue to evolve.
This dynamic could reshape institutional allocation in the crypto space. While Bitcoin still commands the largest share of assets under management, Ethereum’s appeal – driven by recent protocol improvements and a renewed focus on scalability – appears to be growing.
Meanwhile, ARK 21Shares has announced a 3-for-1 share split of its Bitcoin ETF, ARKB, effective 16 June. This move aims to make the ETF more affordable and accessible, particularly for retail investors.
The firm clarified that the split will not impact the fund’s net asset value (NAV), ticker, or investment strategy, but it will reduce the per-share price to a third of its current level. As of Monday, ARKB closed at $104.25, having gained nearly 27% over the current quarter.
ARK’s decision follows a strong performance in May, during which Bitcoin ETFs attracted a total of $5.25 billion, even as gold ETFs experienced outflows.
This share split is expected to further position ARKB as a key gateway for both institutional and retail exposure to Bitcoin.
Ethereum Foundation restructures R&D
In a significant development, the Ethereum Foundation (EF) has restructured its research and development (R&D) division, renaming it the “Protocol” team.
The move, announced via a blog post on 2 June, involved an unspecified number of job cuts and marks a strategic pivot towards greater efficiency and sharper focus.
The restructure comes in response to mounting criticism over the Foundation’s governance and its slow pace in addressing Ethereum’s technical challenges.
Observers within the ecosystem have argued that the network risks falling behind competitors like Solana and zkEVM-based chains if key scalability and usability concerns aren’t addressed.
The new Protocol team will prioritise three core objectives: scaling Ethereum’s base layer (L1) to accommodate higher transaction volumes, expanding blobspace to improve rollup data availability, and enhancing user experience to encourage mainstream adoption.
One source familiar with the situation commented, “The EF’s ‘messy’ R&D approach wasn’t cutting it. This reboot is about focus – scaling L1 and making Ethereum user-friendly isn’t optional anymore”.
The recent Pectra upgrade, implemented on 7 May, added 11 Ethereum Improvement Proposals (EIPs) aimed at improving scalability and wallet functionality.
The network’s developers are now working toward the Fusaka upgrade, which will introduce Peer Data Availability Sampling (PeerDAS), a feature designed to speed up blob transactions.
The reshuffle also aims to eliminate internal silos, enabling quicker decision-making and more direct collaboration with the broader development community.
Prominent developers like Tim Beiko and Alex Stokes have been redeployed to key projects, although some insiders report concerns around morale following the layoffs.
With a leaner internal team, the EF is expected to rely more on grants, community-led initiatives, and bounties to fill R&D gaps.
This approach may help democratise development, but it also raises questions about sustainability and coordination if not managed carefully.
The changes have sparked mixed reactions within the Ethereum community. Some see the restructuring as long overdue. Twitter user @BullishOnETH expressed optimism, posting: “Finally! The EF is streamlining to focus on what matters: scaling and UX. ETH to $10k”.
Others remain wary. User @DeFiWatchdog raised concerns over the timing of the layoffs, noting: “The EF layoffs are a red flag. Cutting R&D during a critical upgrade cycle? Not a good look”.
As Ethereum pushes forward with its ambitious roadmap, the Protocol team will carry the responsibility of delivering on these promises while ensuring continued innovation.
Whether this leaner approach succeeds in accelerating progress remains to be seen, but for now, the restructuring marks a decisive shift in the Foundation’s direction.
The digital assets landscape is undergoing notable shifts as institutional sentiment appears to diverge between Bitcoin and Ethereum.
While Bitcoin ETFs are experiencing consistent outflows amid price consolidation, Ethereum is seeing a surge of capital, backed by strong inflows and strategic developments within its foundation.
These opposing trends reflect a changing narrative within institutional circles, where confidence in Ethereum is growing as it works to resolve technical and user-experience challenges.
Whether this momentum can be sustained will depend on how both networks evolve in the coming months.
