Bitcoin and Gold Outflows: Where Is the Money Flowing?

Bitcoin has been on a downward trend since the start of the year, dropping below $60,000 for the first time since late 2024. The largest funds tracking its performance have lost over $8 billion in weeks. Gold, which began the year with a new all-time high, has also reversed course and is now in the red.

The exodus from Bitcoin ETFs began in November, following the October $19 billion crash. Investors withdrew $3.5 billion in November and continued with billions in December and January. March and April saw improvement with net inflows of $1.32 billion and $1.97 billion, respectively. However, the trend reversed again in May with $2.43 billion withdrawn, and June is on track for a record negative month with over $4 billion in net outflows. Cumulative net inflows have dropped from a record $61.19 billion in October to $51.61 billion as of last week, a reduction of nearly $10 billion. In the past seven weeks alone, approximately $8 billion has been withdrawn.

Gold ETFs tell a similar story. Funds attracted capital early in the year, aligning with the asset’s new all-time high, but the situation has since changed. According to the Kobeissi Letter, ETFs tracking Bitcoin and gold have posted $12 billion in cumulative outflows since April. The largest US gold-backed ETF, $GLD, is down 13% since the start of April, while the largest Bitcoin ETF, $IBIT, is down 12%.

Not all investment assets have seen such withdrawals. US-listed ETFs have attracted over $1 trillion in net inflows in 2026, on track to set a new record. The Kobeissi Letter notes that US semiconductor ETFs have attracted $20 billion in cumulative inflows in the same timeframe that gold and Bitcoin funds have seen outflows. This trend accelerated in mid-May and continued into June. The analysts concluded that semiconductor ETFs $SOXX and $SMH are up 81% and 60%, respectively, over the same period in which $GLD and $IBIT are down 13% and 12%.

Retail investors appear to be rotating out of gold and Bitcoin into semiconductor stocks. Since April, US gold and Bitcoin ETFs have posted -$12 billion in cumulative outflows, while US semiconductor ETFs have attracted +$20 billion in cumulative inflows.

Source: https://cryptopotato.com/bitcoin-and-gold-are-bleeding-so-where-is-the-money-going/