Thomas Daniels
The escalating public dispute between U.S. President Donald Trump and Tesla CEO Elon Musk has precipitated significant volatility across cryptocurrency and equity markets. On June 5, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced net outflows totaling $278 million, according to SoSoValue data. Leading the exodus was ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB), which alone accounted for $102 million in withdrawals.
This downturn follows a brief recovery earlier in the week, during which Bitcoin ETFs saw inflows of $378 million on June 3 and $87 million on June 4. However, the renewed outflows have erased these gains, contributing to a cumulative $1.2 billion withdrawal from U.S. Bitcoin ETFs between May 29 and June 2.
The feud between Trump and Musk intensified after Musk publicly criticized the administration’s “One Big Beautiful Bill,” labeling it as excessive government spending. In response, President Trump threatened to revoke federal contracts with Musk’s companies, including SpaceX. The conflict escalated with personal attacks on social media, leading to a sharp decline in investor confidence.
Market reactions were swift: Tesla shares plummeted 14%, erasing approximately $152 billion in market capitalization, while Trump Media & Technology Group (DJT) stock fell 8%. The broader cryptocurrency market also suffered, with Bitcoin prices dropping below $101,000 and Ethereum declining by 6%.
Despite the turmoil, Ethereum ETFs demonstrated resilience. On June 5, U.S. spot Ether ETFs recorded $11.3 million in net inflows, marking the 14th consecutive day of positive flows. Although this figure represents a decrease from the $56.9 million and $109.4 million inflows on June 4 and June 3 respectively, it underscores sustained investor interest in Ethereum.
Institutional investors continue to show confidence in Ethereum’s long-term prospects. Notably, BlackRock, the world’s largest asset manager, acquired over 214,000 ETH—valued at approximately $560 million—during the week, signaling robust institutional demand.
The ongoing political discord between two of the most influential figures in technology and politics has introduced heightened uncertainty into the markets. As the situation evolves, investors are advised to monitor developments closely, as further volatility in both cryptocurrency and equity markets is anticipated.
