During the first week of June, the cryptocurrency market remained stagnant. However, a public dispute between U.S. President Donald Trump and Tesla CEO Elon Musk on X caused a stir. As a result, Bitcoin fell approximately 4% and narrowly avoided dropping below the $100,000 support level, while Ethereum, Solana, XRP, and various other altcoins also experienced losses.
In the background, there’s a notable change in capital flow. BlackRock, the largest asset management firm globally, recently moved $560 million in Bitcoin to its exchange—an indication of selling—and invested $69 million in Ethereum for its exchange-traded fund (ETF) setup, as reported by Onchain Lens. This action followed a significant number of withdrawals by investors from the iShares Bitcoin Trust (IBIT).
The rotation occurs as net inflows into spot BTC ETFs decreased significantly to $67 million, down from $2.75 billion the previous week, with BlackRock’s own IBIT experiencing a record outflow in a single day. In contrast, spot ETH ETFs attracted $344 million during the same timeframe, nearly doubling their inflows from the prior week.
In another development, Canary Capital has submitted a request for the first spot cryptocurrency ETF in the United States, with Crypto.com serving as the custodian. Meanwhile, on Thursday, USDC issuer Circle launched its initial public offering (IPO) on the New York Stock Exchange (NYSE), pricing its shares at $31 each. The stock debuted at $69 and finished its first day of trading at $83.
While the market may be in a holding pattern, shifts in ETF demand and stablecoin usage are noteworthy. The next phase could depend on what follows the concept of ‘digital gold’.
