Long seen as the spearhead of institutional adoption, Bitcoin ETFs have just experienced one of their worst weeks since their launch. With massive exits and a market under pressure, confidence is wavering. Such a situation reminds us that, in the crypto universe, nothing is ever completely certain, not even for the most solid financial products.
In brief
- Bitcoin spot ETFs saw net outflows of $1.2 billion in one week, one of the worst records since their launch.
- Thursday was particularly brutal, with more than $900 million withdrawn in 24 hours.
- This wave of disengagement coincides with Bitcoin's fall to $81,000, its lowest level since April.
- Funds from BlackRock (IBIT), Grayscale (GBTC) and Fidelity (FBTC) are among the most affected.
A high-pressure week for Bitcoin ETFs
Last Thursday, Bitcoin spot ETFs had a dark day, marking the second largest daily outflow in their history.
In fact, more than 900 million dollars were withdrawn in just 24 hours. In total, the week saw $1.2 billion in net withdrawals, a historic high that places this period as the third worst week since these products launched 22 months ago.
This fall is part of a general context of decline in the crypto market, with bitcoin falling to $81,000, its lowest level since April. Investors are reacting to an increasingly uncertain macroeconomic environment, in particular the decline in expectations of a reduction in key rates by the Fed.
The funds most exposed to this wave of disengagement saw their assets fall sharply. Here is the key figures this week:
- IBIT (BlackRock): more than $1 billion in outflows, the highest outflow in the sector;
- GBTC (Grayscale): $172 million withdrawn;
- FBTC (Fidelity Wise Origin Bitcoin Fund): $116 million in outflows.
Despite this difficult context, FBTC recorded a rebound of +108 million on Friday, while GBTC and Grayscale Bitcoin Mini Trust regained $84.9 million and $61.5 million, respectively.
These few positive signals at the end of the week are not enough to reverse the trend. They nevertheless signal that some investors perceive this correction as an entry opportunity.
The rise of altcoins and the repositioning of investors
While Bitcoin ETFs saw notable outflows, altcoin-based ETFs displayed radically opposite dynamics, attracting increasing investor attention.
The Canary Capital XRP ETF (XRPC) stood out with $58 million in net inflows on its first day of trading, setting a record among crypto ETFs launched this year. This launch even preceded that of the Bitwise Solana Staking ETF (BSOL), which had nevertheless raised 57 million during its debut a few weeks earlier. To date, BSOL has accumulated more than $660 million in assets without experiencing a single day of net outflows, demonstrating a growing appetite for alternative crypto products.
This altcoin breakthrough is part of a global trend. According to data relayed by Bloomberg, several new ETF products backed by XRP and Dogecoin are expected on the markets next week.
In a message published on X, Eric Balchunas, senior analyst at Bloomberg, wanted to put the situation into perspective by recalling that bitcoin had always rebounded after more serious crises: “this asset has survived half a dozen drawdowns worse than this one to reach new highs each time”. He even adds in a mocking tone that “this active should definitely be treated like hot sauce”.
This movement is supported by a wave of applications currently under review at the SEC for ETFs covering token combinations or diversified crypto strategies. The success of these new ETFs shows the rapid evolution of investor demand.
While bitcoin records record drawdowns, the Solana and XRP ETFs are holding up, illustrating a possible shift in investor interest toward other, more dynamic segments of the crypto market that are less exposed to institutional turbulence.
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