Bitcoin and Ethereum ETFs experience more than $500 million in outflows as XRP and Solana funds resist the downturn
Bitcoin and Ethereum ETFs experienced significant outflows totaling over $500 million over two days, while funds for XRP and Solana remained resilient during the sell-off. Bitcoin ETFs saw more than $277 million leaving the products on Tuesday, marking a second consecutive day of outflows that pushed the total outflows to over $500 million across two sessions. Similarly, Ethereum spot ETFs recorded $224 million in outflows on the same day, marking a fourth day of net redemptions amidst broader market weakness.
The decline in digital assets led to a defensive market environment, with investors withdrawing capital from the most widely held spot crypto funds, contributing to selling pressure. Bitcoin slipped below $87,000 as the apex cryptocurrency’s price decreased by 0.4% in the last 24 hours. Retail sentiment on Stocktwits showed a trend of ‘extremely bearish’ sentiment towards Bitcoin amid ‘low’ levels of chatter.
Ethereum’s price experienced a decline of over 1% and traded around $2,920, struggling to stay above $3,000. Retail sentiment on Stocktwits dipped to ‘extremely bearish’ territory for Ethereum from ‘bearish’ territory with ‘low’ levels of chatter.
Amidst this market downturn, XRP and Solana stood out by bucking the trend. XRP spot ETFs have shown strong demand, surpassing $1 billion in cumulative net inflows within a month of launch. On Tuesday alone, XRP ETFs attracted $8.5 million in net inflows, reaching a total of $1.01 billion in net inflows. Similarly, Solana spot ETFs received $3.6 million in net inflows, demonstrating positive investor interest despite a dip in the token’s price.
Conversely, other altcoin ETFs, such as Dogecoin, Hedera Hashgraph, Chainlink, and Litecoin, saw limited activity over the past month, reflecting subdued risk appetite beyond select assets. ETFs linked to DOGE recorded inflows on December 16, while LTC products experienced stagnant flows since November. HBAR ETFs last received inflows on December 9, totaling $762 million.
In conclusion, the cryptocurrency market has seen significant outflows from Bitcoin and Ethereum ETFs amidst broader market weakness, with XRP and Solana standing as exceptions by attracting fresh capital. The market sentiment remains cautious as investors navigate the volatility and uncertainty in the digital asset landscape.
