Key facts
- Spot Bitcoin ETFs saw $2.4 billion in outflows in May.
- U.S. spot XRP ETFs recorded $118.29 million in net inflows in May.
- Ripple unlocked 1 billion XRP from escrow at the beginning of June.
- Filtered stablecoin transaction velocity reached a record 49.7 times annualized.
- Bitcoin and Ethereum spot ETFs are facing sustained outflows.
May saw significant outflows from spot Bitcoin ETFs, totaling $2.4 billion, indicating a potential cooling of investor interest after their initial launch surge. In contrast, U.S. spot ETFs tied to XRP experienced their strongest month, with $118.29 million in net inflows. Concurrently, Ripple released 1 billion XRP from escrow at the beginning of June, a routine monthly unlock. Stablecoin use is accelerating beyond crypto trading, with filtered transaction velocity reaching a record 49.7 times annualized. Bitcoin and Ethereum spot ETFs are facing sustained outflows, raising questions about the depth of institutional demand, though investors are still making selective bets on assets like XRP. Monthly flows into crypto treasury companies dropped to $180 million in May, the weakest level since October 2024, with Bitcoin-linked firms accounting for almost all of it. This represents a 95% decrease from April's $4.4 billion and is 93% below the January-May average. The decline follows a surge in late 2024 after the US election results and a more favorable policy backdrop. Treasury firms face increased scrutiny as the market crash added pressure, and companies relying solely on token accumulation are finding it harder to attract investors. Galaxy Digital suggests treasury firms must actively manage assets through staking or DeFi lending, rather than just holding them. Patrick Ngan of Zeta Network Group emphasized the need for companies holding Bitcoin to demonstrate active use beyond balance sheet parking. Arthur Firstov of Mercuryo noted that ETFs offer institutions a low-cost, liquid way to gain crypto exposure, challenging listed treasury firms. He added that while staking can generate revenue for proof-of-stake treasuries, it cannot compensate for weak operations or balance sheet losses. Hybrid models are emerging, such as Grant Cardone's approach linking Bitcoin with multifamily housing. The data indicates a significant slowdown in the sector, with Bitcoin still dominant but the era of easy money having faded.