JPMorgan Says the Debasement Trade Retreat Has ‘Accelerated’ for Bitcoin as June ETF Outflows Reach $2.1 Billion

The debasement trade that fueled demand for bitcoin and gold through much of this year is unwinding, and the retreat has accelerated for bitcoin in recent weeks, JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said in a report.

The debasement trade refers to investor demand for bitcoin and gold as hedges against geopolitical uncertainty, persistent inflation, rising government debt, and weakening confidence in fiat currencies. JPMorgan said gold ETFs saw around $20 billion of outflows in the week through June 5, while bitcoin ETFs recorded gradually increasing outflows over the past four weeks. “We see broad based retreat of the debasement trade by both retail and institutional investors,” the analysts wrote, adding that the retreat “has continued for gold and if anything accelerated for bitcoin.” The bank tied the shift to easing US-Iran tensions, which has drained the geopolitical premium that made both assets attractive hedges.

The pressure shows up clearly in fund flows. US spot bitcoin ETFs have shed roughly $2.1 billion in June so far, though Decrypt noted the pace of outflows has moderated as analysts assess whether selling is exhausting. The withdrawals have erased much of the year’s earlier inflows.

Not everyone reads the outflows as pure capitulation. Fabian Dori, chief investment officer at Swiss digital asset bank Sygnum, told CoinDesk that a significant portion likely reflects the unwinding of cash-and-carry arbitrage trades rather than investors abandoning crypto. In that strategy, institutions buy spot bitcoin, often through an ETF, while selling bitcoin futures to capture the premium; when the premium narrows, they close the position by selling the spot exposure.

Dori pointed to declining CME bitcoin futures open interest alongside the ETF redemptions, and noted that exchange flows and stablecoin supply have stayed broadly normal, signs that capital is not broadly fleeing the ecosystem. Together, the two readings frame the selloff as institutional positioning unwinding rather than a verdict on bitcoin itself.

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