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Bitcoin ETF outflows are noise as Wall Street doubles down on crypto, says analyst
Recent Bitcoin ETF outflows look dramatic in headlines, but Bloomberg Intelligence’s Eric Balchunas says the broader adoption story remains intact.
Jun 2, 2026, 12:14 p.m. 2 min read
The context: Wall Street firms continue expanding crypto offerings despite recent market weakness.
- Balchunas pointed to Morgan Stanley’s involvement in the space and said Goldman Sachs and BlackRock are developing additional Bitcoin-related products.
- He argued that institutional interest remains strong and should continue supporting demand for crypto investment vehicles.
- At the same time, he warned the industry against relying solely on the narrative that more institutional investors are coming.
Reading between the lines: Balchunas wants the industry to refocus on Bitcoin’s core value proposition.
- He said Bitcoin’s appeal as a hedge against currency debasement should remain central to the investment case.
- The ETF story has become so dominant that it risks overshadowing broader discussions about Bitcoin’s technology and monetary characteristics, he said.
- “The ETFs became such a big story they almost overtook the narrative,” Balchunas said.
Worth watching: Balchunas identified Hyperliquid as crypto’s latest breakout story.
- He said newly launched Hyperliquid-linked ETFs have seen strong trading activity and performance, bucking the pattern of many recent crypto ETF launches.
- Balchunas praised Hyperliquid’s token economics, particularly its buyback model that links platform activity more directly to token-holder benefits.
- He described Hyperliquid as evidence that crypto innovation continues beyond Bitcoin and ETF adoption.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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