Bitcoin ETF withdrawals exceed $2 billion in two weeks, but analysts say "institutional funds have not left the market"

Mars Finance News, May 25 — On Monday, Bitcoin continued to trade in a range below $78,000. This came after US spot Bitcoin ETFs saw outflows totaling over $1 billion for two consecutive weeks, with net outflows of $1.26 billion last week. Despite continued withdrawals from BTC and ETH ETFs, many institutions believe this looks more like “capital rotation” rather than a full institutional exit.

BRN Research Director Timothy Misir said, “Institutional buying hasn’t disappeared; it’s rotating.” The data shows that, over the same period, XRP ETFs recorded net inflows of $22 million, Solana ETFs saw inflows of $16 million, the newly launched Hyperliquid (HYPE) ETF attracted about $72 million, and Ethereum ETFs saw outflows of $216 million.

Analysts noted that recent market movements have been disturbed by multiple factors, including US-Iran tensions, the SEC’s delay of its tokenized stock trading plans, and the upcoming release of US macroeconomic data. These factors have kept BTC and ETH trading in narrow ranges. Meanwhile, the options market shows traders are still betting on sharp volatility. In the options expiring May 29, open interest is most concentrated in Bitcoin $75,000 put options and $80,000 call options.

Institutional firm Laser Digital believes that if the US and Iran reach an agreement and oil prices fall significantly, US stocks could hit new highs, which would help revive risk-asset sentiment. However, key disagreements—such as Iran’s nuclear issue and control of the Strait of Hormuz—remain unresolved.