- Bitcoin ETFs recorded $5.23B net inflows in May, surpassing gold ETF outflows of $1.58B.
- BlackRock’s IBIT led with $5.9B of inflows despite outflows across the sector on May 31.
- Bitcoin’s price climbed 11% in May, while gold ETFs experienced their sharpest outflows this year.
According to Soso value, Bitcoin exchange-traded funds (ETFs) saw a total of $5.23 billion invested in May 2025. In contrast, gold ETFs experienced $1.58 billion in outflows during the same period. This shift in investor behavior indicates a transition in institutional preference from traditional assets like gold to digital alternatives such as Bitcoin.
Data from BOLDETF.com confirms this divergence. Between May 5 and May 30, BTC ETF inflows climbed steadily, peaking above $8 billion before closing the month with $5.25 billion in net gains. Gold ETFs began the month in positive territory but fell sharply in mid-May, bottoming near negative $5.5 billion before ending the month with $1.58 billion in net outflows.
Bitcoin ETF Inflows Highlight Rising Institutional Confidence
The crossover, which occurred around May 12, marked a turning point. That week, there was also a notable capital rotation as BTC ETF flows surpassed gold ETF flows for the first time in the month. Bitcoin’s price also increased by approximately 11% rising from $94,200 to reach $104,000 by month’s end, coinciding with the flow surge.
According to data, BlackRock’s iShares Bitcoin Trust (IBIT) led the inflows with $5.9 billion during May. Meanwhile, Grayscale’s GBTC and ARKB recorded outflows of $321 million and $292 million respectively. Although all U.S. spot Bitcoin ETFs faced $616 million in net outflows on May 31—the worst daily figure since February—IBIT remains dominant. It manages $69.2 billion in assets, accounting for over 80% of total Bitcoin ETF volume.
Bloomberg analyst Eric Balchunas attributed the surge in IBIT’s inflows to institutional demand. He noted that in some recent periods, IBIT absorbed more than 100% of sector-wide flows. ETF Store president Nate Geraci also commented that IBIT’s growth, reaching nearly $70 billion in assets within 17 months of launch, was unprecedented.
Gold ETF Outflows Reflect Changing Safe-Haven Preferences
The outflows from gold ETFs coincided with global shifts in inflation expectations and central bank policy. Despite a recent slowdown in core PCE inflation, rising yields and geopolitical risks have added to market uncertainty. These factors may have reduced gold’s appeal as a near term store of value.
Simultaneously, it seems BTC is gaining ground as an alternative hedge. According to Axel Adler Jr. from CryptoQuant, declining exchange reserves and increased long-term holdings have tightened supply. Bitcoin’s May rally may have benefited from these fundamentals and corporate buying of cryptocurrencies.
Bitcoin is consolidating after a midweek correction, with price stabilizing near $105.2K following a drop from the $110.8K high. The $103K support level has twice prevented further declines, while $110K remains key resistance.
Over the past week, momentum dropped sharply from 14% to 7.7%, which indicates reduced strong buying interest. Since the trade volume is low and the momentum is nearly neutral, Bitcoin will most likely stay in a narrow range from $103K to $105K unless there’s a catalyst that triggers a breakout.
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