Crypto ETFs: May’s Outflows, June’s Pressure, and What’s Next for Investors

by

Crypto for Advisors: Crypto ETFsCoinDesk Indices

What to know:

You’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday.

As a researcher here at CoinDesk, I’m taking a look at the crypto outflows we saw in May. I’ll be breaking down what those movements tell us about the current state of the market and what signals they’re sending.

Then, in “Ask an Expert,” Bryan Courchesne from DAiM addresses how investors can navigate the current market environment.

Crypto ETFs: May Breakdown and What’s Next

After two months of gains, crypto investment products saw significant outflows in May. TrackInsight data shows investors pulled out $2.39 billion globally, a sharp reversal from the $1.79 billion inflow in April. This caused total assets under management to drop from $158.7 billion to $141.1 billion. The majority of these outflows came from crypto products listed in the U.S., while investment outside the U.S. slowed down and turned slightly negative.

The CoinDesk 20 Index (CD20), which captures a diversified cross-section of the top 20 digital assets, fell 1.11% in May after gaining 5.45% in April. The more concentrated CoinDesk 5 Index (CD5) declined 3.73% and bitcoin itself fell 3.56%, a sharp reversal from April, when bitcoin (up 11.87%) and the CD5 (up 9.91%) led a broad rally. The return hierarchy also inverted: large caps led in April, whereas in May the broad index outperformed, indicating that large-cap assets bore the brunt of the decline while diversified exposure offered relative shelter.

TrackInsight data shows most of the money leaving the crypto market came from Bitcoin and Ethereum investments. However, some alternative cryptocurrencies – particularly XRP, Hyperliquid, and Solana – actually saw an increase in investment over the same period. This difference between what’s happening with Bitcoin/Ethereum and these other coins became more pronounced throughout the month.

Largest ETF Gainers, Globally (by May Net Flows)

  • NEOS Bitcoin High Income ETF (BTCI): +$141.8 million; $1.24 billion AUM
  • Bitwise Solana Staking ETF (BSOL): +$79.3 million; $672.2 million AUM
  • Morgan Stanley Bitcoin Trust (MSBT): +$73.9 million; $260.1 million AUM
  • Bitwise Hyperliquid ETF (BHYP): +$62.0 million; $71.1 million AUM
  • iShares Staked Ethereum Trust ETF (ETHB): +$56.1 million; $584.3 million AUM
  • 21Shares Hyperliquid ETF (THYP): +$49.7 million; $61.6 million AUM
  • NEOS Boosted Bitcoin High Income ETF (XBCI): +$42.8 million; $71.8 million AUM
  • Franklin XRP ETF (XRPZ): +$38.7 ,million; $273.8 million AUM
  • iShares Bitcoin ETP (IB1T): +$33.1 million; $1.06 billion AUM

In May, crypto ETFs listed in the U.S. continued to lead the world, controlling about 84.5% of the $141.1 billion global market – a share similar to the 85.1% they held in April. This happened even though these U.S. ETFs saw a net outflow of $2.37 billion, closing the month with $119.2 billion in assets.

May’s headline outflow ended two months of inflows and was overwhelmingly a U.S., large-cap reversal. The gainers list, by contrast, was dominated by income, staking and newly launched products. With the CoinDesk 20 down just 1.11% against a 3.73% fall in the large-cap CD5, diversified and altcoin exposures showed a relative resilience that the flow data corroborated. That resilience has since been overwhelmed: by early June, Bitcoin had fallen to around $62,000, and the major indices were down a further 15% or more, leaving no sign that May’s outflows marked a bottom and pointing to intensifying pressure into June.

– Joshua de Vos, research team lead, CoinDesk

Ask an Expert

Q: Bitcoin’s RSI recently dropped into the low 40s. Why is that significant?

Bitcoin’s Relative Strength Index (RSI) has dropped to a level in the low 40s, which doesn’t happen very often. We’ve only seen this a few times before, like in February and March 2020 during the start of the COVID-19 pandemic. On those occasions, this signaled that Bitcoin was undervalued, and it was followed by significant price increases and long-term growth. While past performance isn’t a promise of future results, these periods have historically been good times for long-term investors to buy Bitcoin.

Q: Does this signal present an opportunity today?

It’s possible. Historically, times when the market feels negative have been good opportunities to invest in Bitcoin, especially for those planning to hold it for the long term. However, it can be difficult to buy when things look bad, and that’s why many investors end up missing out.

Q: What advice would you give investors who struggle to evaluate crypto projects?

If you cannot confidently assess factors such as real-world usage, security, tokenomics, decentralization and adoption metrics, simplifying your approach may be the best option. Bitcoin remains the most established digital asset, with the strongest network effects, the clearest store-of-value thesis, institutional support through ETFs and a proven ability to survive multiple market cycles.

Q: How can investors separate credible advice from noise?

When seeking investment advice, prioritize analysts and advisors who can demonstrate a proven history of accurate predictions and insightful, fact-based opinions. Be wary of anonymous online personalities, those who are clearly paid to promote investments, and anyone who seems focused on gaining attention rather than providing sound advice. Often, the key to smart investing is simply tuning out the noise and focusing on reliable information.

Q: What’s the key takeaway from today’s market environment?

This RSI setup could prove to be another important moment in bitcoin’s history. While no outcome is guaranteed, bitcoin has repeatedly rewarded patience, discipline and long-term conviction. Investors focused on fundamentals may view current conditions as an opportunity, while those still waiting for unrealistic altcoin narratives to play out risk missing another bitcoin-led recovery.

– Bryan Courchesne, founder, DAiM

Looking for more? Receive the latest crypto news from coindesk.com and market updates from coindesk.com/institutions.

Read More

2026-06-11 18:06