Crypto ETPs See $2.4B Outflows in May as Bullish Momentum Fades
Global crypto ETPs swung to $2.39 billion in net outflows in May, reversing two months of inflows, as U.S.-listed vehicles accounted for nearly all redemptions and total AUM dropped to $141.1 billion.
Global crypto ETPs recorded $2.39 billion in net outflows in May, ending two consecutive months of net inflows, according to TrackInsight data cited by CoinDesk.
The reversal marks a sharp shift in sentiment. In April, digital-asset investment products had attracted $1.79 billion in net inflows. Total assets under management fell to $141.1 billion from $158.7 billion a month earlier. U.S.-listed vehicles accounted for nearly all of the redemptions. The data, analyzed by CoinDesk Research's Joshua de Vos, suggests that the bullish momentum that had built up in March and April has faded. For crypto traders, ETP flow data is a key barometer of institutional demand. Sustained outflows can signal waning confidence and may precede further price weakness, especially if the trend continues into June. NowPrice's real-time crypto quotes allow traders to monitor how spot prices are reacting to these capital movements.
Looking ahead, the market will watch for any catalyst that could reignite inflows, such as clearer regulatory signals or a shift in macroeconomic conditions. The next Federal Reserve meeting and inflation data releases will be closely monitored for their impact on risk appetite. If outflows persist, it could weigh on Bitcoin and other major cryptocurrencies, which have already been under pressure from broader market uncertainty.