In today’s newsletter, CoinDesk Research’s Joshua de Vos analyzes May’s crypto outflows to explain the meaning of current market signals.
Next, in “Ask an Expert,” DAiM’s Bryan Courchesne explains how investors can navigate the current market environment.
Crypto ETF: May outage and what’s next
May ended two straight months of net inflows as global crypto ETP flows returned to massive redemptions. According to TrackInsight data, global digital asset investment products saw $2.39 billion in net outflows, compared to $1.79 billion in net inflows in April, as total assets under management fell to $141.1 billion from $158.7 billion a month earlier. US-listed vehicles accounted for almost all redemptions, while flows outside the US, which had already cooled in April, turned slightly negative.
The CoinDesk 20 Index (CD20), which captures a diverse sample of the top 20 digital assets, fell 1.11% in May after gaining 5.45% in April. The more concentrated CoinDesk 5 Index (CD5) fell 3.73% and bitcoin itself fell 3.56%, a sharp reversal from April, when bitcoin (up 11.87%) and CD5 (up 9.91%) led a broad rally. The hierarchy of returns also reversed: large caps dominated in April, while in May the broad index outperformed, indicating that large cap assets bore the brunt of the decline while diversified exposure provided relative protection.
According to TrackInsight data, outflows were concentrated in bitcoin and ether-linked instruments globally, while parts of the altcoin market, led by XRP, Hyperliquid and Solana, attracted net inflows, a divergence that widened over the month.
The World’s Biggest ETF Gainers (by May Net Flows)
- NEOS Bitcoin High Income ETF (BTCI): +$141.8 million; $1.24 billion in assets under management
- Bitwise Solana Staking ETF (BSOL): +$79.3 million; $672.2 million in assets under management
- Morgan Stanley Bitcoin Trust (MSBT): +$73.9 million; $260.1 million in assets under management
- Bitwise Hyperliquid ETF (BHYP): +$62.0 million; $71.1 million in assets under management
- iShares Staked Ethereum Trust ETF (ETHB): +$56.1 million; $584.3 million in assets under management
- 21Shares Hyperliquid ETF (THYP): +$49.7 million; $61.6 million in assets under management
- NEOS Boosted Bitcoin High Income ETF (XBCI): +$42.8 million; $71.8 million in assets under management
- Franklin XRP ETF (XRPZ): +$38.7 million; $273.8 million in assets under management
- iShares Bitcoin ETP (IB1T): +$33.1 million; $1.06 billion in assets under management
US-listed products continued to dominate the global crypto ETF market in May. Despite net outflows of $2.37 billion, U.S.-domiciled ETFs closed the month with $119.2 billion in assets under management, retaining approximately 84.5% of the $141.1 billion global market, broadly in line with April’s 85.1%.
The capital outflows recorded in May ended two months of capital inflows and essentially represent a reversal of trend for US large caps. In contrast, the list of winners was dominated by revenue, stakes and newly launched products. With the CoinDesk 20 down just 1.11% compared to a 3.73% drop in the large-cap CD5, diversified and altcoin exposures showed relative resilience that flow data corroborated. This resilience has since been exceeded: by early June, Bitcoin had fallen to around $62,000 and major indexes were still down 15% or more, leaving no sign that May’s outflows were bottoming out and pointing to intensifying pressure in June.
Read more: May Global ETF Recap and May US-Focused ETF Recap.
– Joshua de Vos, Research Team Leader, CoinDesk
Ask an expert
Q: Bitcoin’s RSI recently fell into the 40s. Why is this important?
Bitcoin’s relative strength index (RSI) has fallen into the 40s over key periods, which is a relatively rare occurrence. Similar readings were seen in February 2020 and during the COVID crash in March 2020. In both cases, these oversold conditions preceded strong rallies and substantial long-term gains. Although no indicator guarantees future performance, historically these periods have often represented attractive accumulation opportunities for long-term investors.
Q: Does this signal present an opportunity today?
Potentially, yes. For investors who remain focused on Bitcoin and have a long-term time horizon, periods of market pessimism have historically offered some of the best entry points. The problem is that buying is often more difficult when sentiment is negative, which is exactly why many investors miss these opportunities.
Q: What advice would you give to investors who are having difficulty evaluating crypto projects?
If you can’t confidently assess factors like actual usage, security, tokenomics, decentralization, and adoption metrics, simplifying your approach may be the best option. Bitcoin remains the most established digital asset, with the strongest network effects, the clearest store of value thesis, institutional support via ETFs, and a proven ability to survive multiple market cycles.
Q: How can investors separate credible advice from noise?
A: Look for analysts and advisors who have verifiable experience, are often right, and have made evidence-based comments. Be wary of anonymous influencers, paid promoters, and personalities whose primary business model appears to generate engagement. In many cases, the difference between a successful investment and costly mistakes comes down to ignoring the attention machine.
Q: What is the key takeaway from the current market environment?
This RSI pattern could prove to be another important moment in Bitcoin history. While no outcome is guaranteed, Bitcoin has repeatedly rewarded patience, discipline, and long-term conviction. Fundamentally-focused investors may view current conditions as an opportunity, while those still waiting for unrealistic altcoin narratives to play out risk missing out on another bitcoin-led rally.
– Bryan Courchesne, founder, DAiM
Continue reading
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Looking for more? Get the latest crypto news at PK Press Club.com and market updates at PK Press Club.com/institutions.
