Bitcoin ETFs Outpace Gold ETFs With $5.23 Billion Surge

In May 2025, Bitcoin ETFs saw $5.23B in inflows, greatly outpacing gold ETFs which suffered $1.58B in outflows. Leading the inflows was BlackRock’s IBIT, absorbing a massive $5.9B even amid negative trends in the sector. The shift from gold to Bitcoin indicates changing preferences, driven by institutional confidence and broader market uncertainties.

In May 2025, Bitcoin exchange-traded funds (ETFs) witnessed an impressive $5.23 billion in net inflows. This surge starkly contrasts with gold ETFs, which recorded outflows totalling $1.58 billion during the same period. It signifies a potential move by investors away from gold, a traditional safe haven, towards the relatively new digital asset of Bitcoin.

Gaining insights from BOLDETF.com, we see that Bitcoin ETF inflows rose steadily until the end of May, with inflows peaking above $8 billion before settling at $5.25 billion in net gains. On the flip side, gold ETFs began with positive inflows early in the month, but saw a sharp decline, bottoming out around negative $5.5 billion before finishing the month with that $1.58 billion in outflows.

A notable shift occurred around May 12 when BTC ETF inflows crossed those of gold ETFs for the first time within the month. Bitcoin itself also rallied, increasing around 11% as its price moved from $94,200 to $104,000 by the end of May, coinciding neatly with this flow shift.

Leading the charge was BlackRock’s iShares Bitcoin Trust (IBIT), which saw a remarkable $5.9 billion influx in May. In contrast, Grayscale’s GBTC and ARKB faced outflows of $321 million and $292 million respectively. Despite the overall sector experiencing $616 million in outflows on May 31—a rough day indicating the worst daily figure since February—IBIT stood resilient, managing a hefty $69.2 billion in assets, which accounts for over 80% of the total Bitcoin ETF volume.

Experts suggest that the influx into IBIT can be largely attributed to institutional demand. Bloomberg analyst Eric Balchunas highlighted that, unusually, IBIT has at times absorbed more than 100% of all flows in the ETF sector. Nate Geraci, president of ETF Store, remarked on the pace of IBIT’s growth, noting its ascent to nearly $70 billion in assets in just 17 months, a feat that’s unprecedented.

Contrastingly, gold ETF outflows are indicative of a changing landscape in safe-haven investments. As inflation expectations fluctuate, alongside central bank policy shifts, gold seems to be losing its allure as a go-to asset for safety. The current environment of rising yields and ongoing geopolitical risks contributes to a feeling of uncertainty, which may dissuade investors from gold in the short term.

Interestingly, Bitcoin appears to be stepping in as a viable hedge alternative. Axel Adler Jr. from CryptoQuant discussed the declining levels of exchange reserves and an uptick in long-term holdings, hinting at tighter supply. These fundamentals, combined with increased corporate interest in cryptocurrencies, could have bolstered Bitcoin’s impressive rally in May.

Post midweek correction, Bitcoin has been consolidating around the $105.2K mark, managing to stabilize after a drop from its peak at $110.8K. Additionally, the $103K support level has held firm against further price declines. However, Bitcoin is facing key resistance around the $110K mark.

In the past week, momentum for Bitcoin has noticeably decreased from 14% to 7.7%, indicating a dip in strong buying interest. With trade volumes being low and momentum nearing neutral, Bitcoin is likely to maintain a tight trading range between $103K and $105K unless triggered by a significant market catalyst that encourages a breakout.