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Bitcoin ETF Outflows Drive Investors Toward Prominent Altcoins

Bitcoin ETFs lost over $1.2 billion in one week. Meanwhile, HYPE funds and the DRAM ETF gained strong investor demand. Santiment also linked major ETF outflows to possible crypto market reversals.

Written By : Yusuf Islam
Reviewed By : Achu Krishnan

Crypto-related exchange-traded funds recorded heavy outflows last week as investors moved capital toward select altcoins and high-growth technology products. Spot Bitcoin ETFs lost $1.257 billion between May 18 and May 22, while Ethereum ETFs posted $216 million in net outflows during the same period.

Bitcoin’s price rose only 0.6% during the week. Most altcoins also traded within a narrow range. Still, Hyperliquid’s HYPE token surged nearly 40% as related investment products attracted strong inflows. Meanwhile, a memory chip ETF trading under the ticker DRAM became the fastest-growing ETF in history after surpassing $6.5 billion in assets within 27 trading sessions.

Bitcoin and Ethereum ETFs Face Heavy Withdrawals

Spot Bitcoin ETFs recorded the largest withdrawals among crypto investment products last week. Ethereum-linked ETFs also struggled as investors reduced exposure to the two largest digital assets.

At the same time, several altcoin products continued attracting fresh capital. Spot SOL ETFs brought in slightly more than $15 million in net inflows. Spot XRP ETFs added another $22 million during the same period.

HYPE-focused funds led the altcoin sector with $72.38 million in net inflows. The strong demand closely matched the token’s sharp price increase during the week.

Fund flow data showed a growing divide within the crypto market. While investors pulled money from Bitcoin and Ethereum products, they continued backing selected alternative assets.

DRAM ETF Breaks Growth Records on Wall Street

Outside crypto markets, the DRAM memory chip ETF posted one of the strongest launches in exchange-traded fund history. The fund launched on April 2 and gathered more than $6.5 billion in assets within 27 trading sessions.

The rapid growth surpassed the previous record set by the BlackRock IBIT Bitcoin ETF, which crossed the same mark after 30 trading sessions.

DRAM has climbed more than 84% since launch. The fund also passed $10 billion in assets within 30 trading sessions and entered the top 10 US ETFs by year-to-date inflows.

Trading activity around the fund also increased sharply. DRAM now ranks among the 20 most traded ETFs by volume as investors continue targeting memory chips and AI infrastructure products.

The rise in the ETF reflected growing investor interest in sectors linked to artificial intelligence and semiconductor demand.

Read More: Crypto News Today: Bitcoin Outflows, USDT Gains, and HYPE ETFs Volume Jumped

Santiment Points to Contrarian Market Signals

Market intelligence firm Santiment offered a different interpretation of the recent ETF activity. The company stated that large ETF outflows often create buying opportunities, while major inflows can signal market tops.

Traditional market analysis usually treats ETF inflows as evidence of institutional demand. In contrast, Santiment argued that investor emotions often distort market behavior near turning points.

According to the firm, excessive optimism frequently appears near price peaks, while strong pessimism emerges during market downturns. Santiment said ETF flow data now acts as a sentiment indicator rather than a simple measure of market strength.

The company also noted that crypto markets often move against dominant market expectations. When most investors expect prices to keep falling, much of the selling pressure may already exist in the market.

ETF flows now play a larger role in shaping crypto narratives. Traders, analysts, and retail investors increasingly monitor these movements in real time as they search for signals about future market direction.

Conclusion

Bitcoin ETF outflows reached $1.257 billion last week, while Ethereum ETFs also recorded major withdrawals. At the same time, HYPE funds and the DRAM ETF attracted strong inflows as investors shifted toward selected altcoins and AI-linked sectors. Santiment also pointed to ETF outflows as a possible contrarian market signal.

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