US spot bitcoin exchange-traded funds (ETFs) had their worst month since they launched in January 2024. During June, investors pulled more than $4 billion from these funds as bitcoin prices fell and many large investors reduced their holdings.

The ETFs recorded $4.5 billion in net outflows during the month, according to data from Farside Investors. This broke the previous monthly record set in February 2025. The losses came after another weak month in May, bringing total outflows over the last two months to almost $7 billion.

The heavy withdrawals are a big change for the market. Until recently, strong demand for bitcoin ETFs had been helping support bitcoin's price.

Analysts at Belgian digital asset investment firm Keyrock said the "demand engine that absorbed supply all year has stopped buying." In other words, the steady flow of money into bitcoin ETFs has slowed down, removing an important source of support for the market.

The outflows also reduced the total amount of money held by the funds. Reports said cumulative net inflows since the ETFs launched dropped from about $55.6 billion at the end of May to around $51 billion by the end of June.

At the same time, the total value of assets managed by the funds fell from about $94 billion to around $71 billion.

BlackRock's iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF, saw the biggest withdrawals. Investors pulled around $3.55 billion from the fund during June. Fidelity and Grayscale also recorded large outflows.

Bitcoin also had a difficult month. The scarce digital asset fell below the important $60,000 level and was trading near $58,500 by the end of June. It lost about 20% during the month, making it its worst monthly performance since June 2022.

Many analysts say the large ETF outflows do not mean investors have lost faith in bitcoin. Instead, they believe many institutions are adjusting their investments because of wider economic conditions.

Experts believe the selling was driven primarily by broader macroeconomic conditions rather than weakness in bitcoin itself. ETF outflows probably reflect a shift toward lower-risk assets amid elevated interest rates, geopolitical uncertainty, and a more cautious economic environment, while bitcoin's long-term fundamentals remain intact.

Other analysts believe investors moved money into other opportunities, saying there was a lack of fresh capital after heavy bitcoin buying last year. Many investors shifted money into SpaceX's highly anticipated initial public offering (IPO).

Others pointed to rising US Treasury yields. As government bonds began offering higher returns, some institutions chose to move money out of bitcoin and into safer investments that generate income.

Even with the record outflows, several experts said there is no sign that institutional interest in bitcoin has disappeared.

According to researchers, ETF outflows can put short-term pressure on bitcoin because they reduce demand. However, one bad month does not change bitcoin's long-term outlook.

It might also show that investors are simply becoming more cautious rather than giving up on bitcoin.

Some reports also said companies that hold bitcoin in their corporate treasuries continued buying the scarce digital asset during the price decline, helping provide support to the market.

Analysts now say the next few weeks will be important. If money starts flowing back into bitcoin ETFs, June may simply be remembered as a temporary slowdown. But if the outflows continue, bitcoin could remain under pressure because one of its biggest sources of demand has weakened.