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

BlockBeats News, May 25th. Bitcoin continued to fluctuate below $78,000 on Monday. Previously, the US spot Bitcoin ETF saw fund outflows of over $1 billion for two consecutive weeks, with a net outflow of $1.26 billion last week.

Despite the continuous outflow of funds from BTC and ETH ETFs, several institutions believe that this is more like "fund rotation" rather than institutions exiting entirely.

Timothy Misir, Head of Research at BRN, stated: "Institutional buying pressure has not disappeared but is rotating." Data shows that during the same period, XRP ETF had a net inflow of $22 million, Solana ETF had an inflow of $16 million, the newly launched Hyperliquid (HYPE) ETF attracted around $72 million, and the Ethereum ETF had an outflow of $216 million.

Analysts pointed out that the recent market has been disrupted by multiple factors, including the US-Iran situation, the SEC's postponement of tokenized stock trading plans, and upcoming US macroeconomic data releases, leading to BTC and ETH maintaining narrow fluctuations.

Meanwhile, the options market shows that traders are still betting on significant volatility. In the options expiring on May 29th, the most concentrated holdings were in the Bitcoin $75,000 put options and $80,000 call options.

The institution Laser Digital believes that if the US and Iran reach an agreement, oil prices may sharply fall, US stocks may hit new highs again, thereby reinvigorating risk asset sentiment. However, key disagreements such as the Iran nuclear issue and control of the Strait of Hormuz remain unresolved.