Sunday’s cryptocurrency downturn revealed deepening institutional caution, with spot Bitcoin ETFs recording 240 million in net out flows during pre−market trading. Black Rock′s IBIT saw its first ever daily out flow 37.2M), while Grayscale’s GBTC bled another $156 million.
Key institutional developments:
• CME Bitcoin futures open interest dropped 12%
• MicroStrategy (MSTR) shares fell 9% in after-hours
• Tether’s premium vanished on Kraken (0.998 USD/USDT)
“This isn’t retail-driven panic but professional portfolio rebalancing,” said Fidelity Digital Assets’ Chris Kuiper. “Many allocators are reducing crypto exposure ahead of Q2 earnings season and Fed meetings.”
The ProShares Bitcoin Strategy ETF (BITO) traded at its steepest discount to NAV (-1.8%) since January 2024, signaling weakening institutional demand for synthetic exposure.
