Thursday's PCE Inflation Report Could Decide Bitcoin's Short-Term Direction
Thursday's PCE inflation report could significantly impact Bitcoin's short-term direction.
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Bitcoin ETFs Bleed $1.25B as Memory Chip ETF Becomes Wall Street’s New Obsession
TL;DR
Bitcoin ETFs experienced $1.25 billion in outflows last week as investors shifted focus to a rapidly growing memory chip ETF. Bitcoin's price saw minimal gains, rising only 0.6%.
Key points
- Bitcoin ETFs saw $1.257 billion in net outflows
- Investors are shifting focus to a memory chip ETF
- Bitcoin's price rose by only 0.6%
Last week saw heavy outflows in crypto-related exchange-traded funds, while a memory chip ETF became one of the fastest-growing funds in history.
Bitcoin’s price failed to chart notable gains in the interim and is up by 0.6%. Many altcoins saw similar price action, with a few exceptions, such as Hyperliquid’s HYPE, which soared by around 40%.
Crypto ETFs Face Heavy Redemptions as Investors Rotate Risk
From May 18 to May 22, spot Bitcoin ETFs saw a whopping $1.257 billion in net outflows, according to data from Farside Investors.
Source: Farside Investors
This signals a shift in investor appetite. At the same time, Ethereum-based ETFs also struggled, posting around $216 million in net outflows for the same period. The pullback suggests that investors are either taking profits, reducing risk exposure, or rotating capital into other sectors, which may be more appealing at the moment.
That said, not all crypto-associated exchange-traded funds suffered. Spot SOL ETFs attracted slightly over $15 million in net flows, while spot XRP ETFs brought in $22 million.
HYPE funds saw even stronger demand, attracting $72.38 million in net inflows – a move that was largely reflected in the token’s price.
Fund flows show that while Bitcoin and Ethereum may have faced selling pressure, investors are still taking bets across the broader crypto market, focusing on select altcoins instead.
DRAM’s Record-Breaking Rise Suggests a New ETF Frenzy
The Memory ETF, which trades under the ticker DRAM, has officially become the fastest-growing exchange-traded fund in history. It launched on April 2 and managed to accumulate upwards of $6.5 billion in assets in just 27 trading sessions.
With this, it beat the previous record, held by the BlackRock IBIT Bitcoin ETF. It took 30 trading sessions to cross that level.
Q&A
What caused the $1.25 billion outflow from Bitcoin ETFs?
The outflow was driven by investors rotating their risk towards other assets, particularly a memory chip ETF that gained significant attention.
How did Bitcoin's price perform during the ETF outflows?
During the outflows, Bitcoin's price increased by only 0.6%, indicating a lack of notable gains amidst the investor shift.
What is the significance of the memory chip ETF's growth?
The memory chip ETF became one of the fastest-growing funds in history, highlighting a shift in investor interest away from crypto assets.
