Bitcoin Spot ETF Records Worst May...Crushing Defeat to AI Stocks

▲ Bitcoin (BTC) price drop

As Bitcoin (BTC) spot ETFs recorded their worst monthly performance this May, an analysis suggests that investment funds are shifting to the stock market, which is riding the artificial intelligence boom.

According to financial news outlet Benzinga on May 30 (local time), U.S. investors are withdrawing funds from Bitcoin spot ETFs as Bitcoin continues to underperform the stock market. After attracting $3.2 billion in March and April, the overall Bitcoin spot ETFs recorded outflows of over $2.43 billion in May.

Bitcoin spot ETFs attracted $1.6 billion during the first six trading days of this month, but the trend sharply reversed thereafter. Over the past week, $1.42 billion flowed out, and in the two weeks prior, outflows of $1.26 billion and $1 billion were recorded, respectively. These products have accumulated net inflows of $55.6 billion and currently hold $94 billion in assets.

The $2.43 billion outflow in May surpassed the $1.6 billion outflow in January, making it the weakest monthly performance this year. BlackRock's iBIT led the outflows, with $68 million exiting on Friday alone. Fidelity's FBTC recorded an outflow of $31.95 million, while Grayscale's GBTC and BTC saw outflows of $2.85 million and $9.74 million, respectively.

Benzinga cited the strong stock market as the reason behind the outflows from Bitcoin spot ETFs. The S&P 500 index and Nasdaq 100 index have risen 10% and 20% respectively this year, reaching all-time highs. Vanguard S&P 500 ETF (VOO) and Invesco Nasdaq 100 ETF (QQQM) added $66 billion and $11 billion in assets, respectively. The Roundhill Memory ETF (DRAM), launched in April, also attracted over $12 billion in assets.

Technical trends are also weighing on Bitcoin. Benzinga reported that Bitcoin formed a rising wedge pattern and then fell below its 50-day exponential moving average, with a rise in the Average Directional Index (ADX) indicating an acceleration of the downtrend. Bitcoin remains 41% below its all-time high, and Benzinga analyzed that it could test below $70,000 if it falls further.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*