Here's why bitcoin ETF outflows may have little to do with SpaceX mania
Bitcoin ETFs have seen nearly $5.75 billion of outflows since mid-May, pushing bitcoin below $60,000 and sparking claims that investors are selling crypto to fund the SpaceX IPO and other upcoming listings. A competing explanation is stronger: the ETF redemptions likely reflect unwinding of cash-and-carry arbitrage trades rather than a broad rotation out of crypto. Indicators such as exchange balances, stablecoin supply, and inflows into higher-risk digital asset products do not show signs of a major exodus from the crypto market. CME bitcoin futures open interest also fell alongside ETF outflows, which fits traders closing spot-and-futures basis trades as the premium narrowed. That suggests the selling pressure may be technical and market-structure driven, not a direct response to IPO demand.
