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Bitcoin ETF sees outflows of over $2 billion in two weeks, but analysts say “institutional funds have not exited”

2026.05.25 20:16:07

May 25: Bitcoin remained volatile below the $78,000 threshold on Monday, continuing its recent sideways price trend. Earlier, U.S. spot Bitcoin ETFs saw over $1 billion in net outflows for two straight weeks, with last week’s net withdrawal totaling $1.26 billion. Despite persistent outflows from BTC and Ethereum ETFs, several institutions frame these moves as "fund rotation" rather than a complete retreat from the crypto space. Timothy Misir, Head of Research at BRN, stated: "Institutional buying pressure hasn’t vanished—it’s just rotating to other assets." Data supports this shift: over the same period, the XRP ETF posted a $22 million net inflow, Solana ETF pulled in $16 million, the newly launched Hyperliquid (HYPE) ETF attracted roughly $72 million, while Ethereum ETF outflows reached $216 million. Analysts attribute recent market choppiness to multiple factors: U.S.-Iran tensions, the SEC’s delay in its tokenized stock trading plans, and upcoming U.S. macroeconomic data releases—all of which have kept BTC and ETH trading in tight ranges. The options market shows traders are still positioning for significant volatility. For options expiring May 29, the most concentrated positions are Bitcoin $75,000 put options and $80,000 call options. Institution Laser Digital noted that a U.S.-Iran deal could trigger a sharp drop in oil prices, push U.S. stocks to new highs, and reignite risk appetite for crypto assets. That said, key disagreements—including the Iran nuclear program and control of the Strait of Hormuz—remain unresolved.
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