Bitcoin ETFs experienced their largest weekly outflow since late January, posting $1 billion in net redemptions for the week ending May 15 after a strong April performance. This marked the end of a six-week inflow streak that had attracted $3.4 billion at an average of $568 million per week. The week ended with approximately $1.16 billion in gross outflows against just $158 million in inflows, representing about $1 billion net outflow. The reversal came despite Bitcoin trading near $80,836, briefly touching $81,000 for the first time in over three months on May 1, before momentum cracked. Latest data shows Bitcoin trading near $75,400, down nearly 2% in the past 24 hours, as recovery momentum weakens below crucial resistance levels.
Bitcoin ETFs closed April with roughly $2 billion in net inflows, marking the strongest monthly total of 2026 so far. The funds started May with a $629.73 million single-day inflow on May 1, followed by another $532.21 million on May 4. As reported by CoinDesk, cumulative inflows since January 2024 reached $58 billion with total net assets of $103.78 billion. BlackRock's IBIT led with $335.49 million in net subscriptions, while Fidelity's FBTC added $184.57 million. However, the momentum shift was driven by rising Treasury yields and a 3.8% CPI print in May, which reduced expectations for Federal Reserve rate cuts and made bonds more attractive to large institutional funds.
Bitcoin's three-month uptrend against gold has broken down, according to technical analysis of the bitcoin-to-gold ratio. The ratio, which measures the per-coin dollar price of BTC against the per-ounce dollar price of gold, had been climbing from roughly 12 points to 18 points since early March. However, over the past 24 hours, the ratio has decisively turned lower, snapping the three-month uptrend and penetrating the uptrend line that characterized BTC's mini-bull run against gold. This technical breakdown signals a renewed shift in momentum favoring gold as the preferred 'store of value' asset. WazirX market's desk confirms Bitcoin trades near $75,647, with technicals cautious as sell signals outweigh buys, while the $73,000 to $75,000 zone remains important supported by ETF inflows and long-term holder accumulation.
The contrasting flows between Bitcoin and gold ETFs highlight a clear institutional rotation away from cryptocurrency investments toward traditional precious metals. While Bitcoin ETFs posted $1 billion in net outflows for the week ending May 15, gold and precious metal funds attracted $2.34 billion in investor money during the week ended May 20, extending their inflow streak to a second consecutive week. As reported by Reuters citing LSEG Lipper data, this shift represents a significant rotation away from cryptocurrency investments toward traditional precious metals. The divergence reflects institutional caution as rising Treasury yields and higher inflation expectations make bonds more attractive than non-yielding cryptocurrency assets. Market sentiment has shifted to extreme fear territory, with experts suggesting Bitcoin needs to reclaim higher levels for a stronger recovery.
