Bitcoin and Gold Are Bleeding – So Where Is the Money Going?

Bitcoin has been on an evident downfall since the start of the year as it plunged below $60,000 for the first time since late 2024. The largest funds tracking its performance have lost over $8 billion in weeks.

Although gold began the year on a positive note, hitting a new all-time high, its trajectory reversed, and it’s in the red now. But where is that money going?

Out of Gold and Bitcoin

The exodus from the Bitcoin ETFs began last November, shortly after the October $19 billion crash. Investors pulled out $3.5 billion in November, and kept the withdrawals within the billions in December and January. March and April were a lot better, with net inflows of $1.32 billion and $1.97 billion, respectively.

However, the trend changed once again in May with $2.43 billion withdrawn, while June is on track to set a negative record for the highest net outflows, currently sitting at just over $4 billion. The cumulative total net inflows are down from the $61.19 billion record in October to $51.61 billion as of last week, which means a near $10 billion reduction. Moreover, they have bled approximately $8 billion in the past seven weeks alone.

The landscape around gold is rather similar. The funds attracted fresh capital at the start of the year, which coincided with the asset’s surge to a new all-time high, but the numbers tell a different story now. Data from the Kobeissi Letter indicate that the ETFs tracking BTC and the precious metal 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%.”

The Money Is Going to…

It’s not like all investment assets have seen such withdrawals; further data from the same analysts show that US-listed ETFs have attracted over $1 trillion in net inflows in 2026, on track to set a new record by the end of the year. So, where is the money from BTC and gold going?

The Kobeissi Letter said US semiconductor ETFs have attracted $20 billion in cumulative inflows within essentially the same timeframe in which the funds tracking gold and bitcoin had lost $12 billion. This trend accelerated in mid-May and continued in June.

The analysts concluded that the 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%, respectively.

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.

Over the same period, US semiconductor ETFs have attracted +$20 billion in cumulative inflows.

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— The Kobeissi Letter (@KobeissiLetter) June 27, 2026