Record Bitcoin ETF Outflows, Ethereum Preference Rises

Bitcoin ETFs experienced record outflows of $616.1 million by May 31, 2025, as investors shifted preference to Ethereum ETFs, which recorded a $70.2 million inflow.

ETF flows in May 2025 show a marked shift in investor sentiment, with Ethereum ETFs gaining momentum and Bitcoin ETFs facing increased scrutiny and outflows.

Bitcoin ETFs saw major outflows with institutional investors moving capital towards Ethereum, suggesting changing sentiment. BlackRock and others experienced big outflows while funds like ETHA and FETH garnered interest. Institutional strategies now favor Ethereum ETFs, reflecting market dynamics.

Immediate impacts are evident in ETF flows; Ethereum gains from inflows while Bitcoin’s price pressure reflects outflows. Market sentiment shows a preference for Ethereum-linked assets, including DeFi tokens, as capital rotates from Bitcoin.

Shifts are triggered by risk-off behaviors seen in broader markets, which coincide with large Bitcoin ETF redemptions. Ethereum benefits from perceived market catalysts, seen in ETF and on-chain flow data highlighting this redistribution.

Bitcoin ETFs reported a significant outflow of $616.1 million, while Ethereum ETFs saw an inflow of $70.2 million on May 31, 2025. This shift indicates investors are rotating capital from Bitcoin to Ethereum, potentially reflecting changing sentiment and rising interest in Ethereum-based assets” – Crypto Rover, YouTuber/Cryptosea Founder source.

The shift in capital might result in Ethereum strengthening over Bitcoin in short-term market perceptions. Historical trends, ETF flow data, and market analysis suggest Ethereum could continue to benefit as a preferred institutional asset, potentially affecting related crypto-assets and protocols.