Bitcoin ETFs saw $5.23 billion in net inflows in May, surpassing gold ETF outflows of $1.58 billion, indicating a shift in investor preference from traditional assets to digital alternatives like Bitcoin.
BlackRock's IBIT led with $5.9 billion of inflows despite outflows across the sector on May 31, with Bitcoin's price climbing 11% in May.
The surge in IBIT's inflows is attributed to institutional demand, as it managed $69.2 billion in assets and accounted for over 80% of total Bitcoin ETF volume.
Gold ETF outflows reflected changing safe-haven preferences, with global shifts in inflation expectations and central bank policy contributing to reduced gold appeal as a store of value, while Bitcoin gains ground as an alternative hedge.