Bitcoin & Ethereum ETFs Bleed Over $1B – While Solana and XRP Defy the Trend with Fresh Inflows
Major ETF outflows hammer crypto's old guard as capital pivots toward new contenders.
The Great Rotation Is On
Forget the boring narrative of a rising tide lifting all boats. The latest ETF flow data reveals a stark divergence playing out in real-time. While established giants see staggering outflows, a select group of altcoins is quietly siphoning off that capital, signaling a potential shift in institutional appetite.
Where the Money Went
The headline number is brutal: over a billion dollars exited Bitcoin and Ethereum exchange-traded products in a single week. That's not a minor correction; it's a wholesale repositioning. Analysts are scrambling, with some pointing to profit-taking after recent rallies, while others whisper about a loss of conviction in the legacy narrative. Meanwhile, traditional finance pundits are probably dusting off their 'I told you so' speeches—a classic move when they miss the actual story.
Where the Money Is Going
Enter Solana and XRP. While the big two bled, these networks recorded net inflows. It's not just a trickle; it's a deliberate reallocation. The narrative here isn't about safety or store-of-value. It's about utility, speed, and regulatory clarity—factors that are suddenly outweighing sheer market cap for a segment of smart money. This isn't retail FOMO; it's calculated capital seeking the next phase of growth, bypassing the crowded trades of yesterday.
The Cynic's Corner
Let's be real: Wall Street's embrace of crypto ETFs was always about fees first, philosophy a distant second. So, watching them chase performance from one ticker to another is about as surprising as a banker preferring a bonus to a hug. The flows don't lie—they're just following the momentum, wherever it leads next.
The takeaway? The crypto market is maturing, and with that comes complexity. Bull markets are no longer monolithic. Today's action proves that even within a positive long-term structure, fierce competition for capital is the new normal. The race for the next institutional darling is officially underway.
Bitcoin ETFs Post November-High Redemptions During Global Market Rally
Bloomberg reported that outflows from bitcoin ETFs were the biggest one-day redemption since November, and came at a time when the conventional risk assets reversed against calmer geopolitical tensions.
The remarks by U.S. President Donald TRUMP at Davos, where he dismissed military action over Greenland and indicated a halt to tariffs imposed on Europe, contributed to the boost in equities in the U.S., Europe, and Asia.
The iShares Bitcoin Trust at BlackRock recorded the highest outflow of $356.64 million, with Fidelity’s FBTC in second place at $287.67 million. Grayscale’s GBTC still experienced smaller yet steady redemptions and has had a total cumulative net outflow of over $25 billion since conversion.
The HODL was the only big Bitcoin ETF that recorded a net inflow, which was $6.35 million.
Bitcoin ETFs have already registered weekly net outflows of $1.19 billion, while January remains slightly positive overall, with net inflows of $17.56 million.
At the time of writing, Bitcoin was trading at approximately $89,100, a loss of almost 7% over the past week, and the trading volume was decreasing, indicating a low level of activity in the short term.
Selling Pressure Hits Ethereum ETFs, Led by BlackRock’s ETHA
Ethereum ETFs mirrored the pressure seen in Bitcoin. On January 21, spot Ether ETFs posted net outflows of $297.51 million, following another heavy outflow the previous day.
BlackRock’s ETHA accounted for the bulk of the redemptions, shedding more than $250 million, while Fidelity’s FETH and Grayscale’s ETHE also saw net withdrawals. Grayscale’s lower-fee ETH mini trust was a notable exception, recording a modest inflow.
Despite the outflows, Ethereum ETFs still managed close to $18.3 billion in assets, roughly 5% of Ethereum’s market capitalization.
Ethereum itself briefly reclaimed the $3,000 level before slipping back, trading NEAR $2,900, and was down nearly 13% over the past week.
Capital Shifts to Solana and XRP ETFs Amid Broader ETF Selloff
In contrast to the sell-off in Bitcoin and Ethereum products, Solana and XRP spot ETFs attracted fresh capital. Solana ETFs recorded net inflows of $2.92 million on January 21, lifting cumulative inflows to nearly $870 million.
Assets under management ROSE to about $1.10 billion, supported by steady interest in products from Fidelity, VanEck, and Grayscale, even as SOL’s price fell more than 11% on the week.
XRP ETFs also rebounded, posting $7.16 million in net inflows after starting the week with outflows. Cumulative inflows since launch now stand at $1.23 billion, with total assets around $1.39 billion.
Funds from Bitwise, Franklin Templeton, and Canary Capital led the day’s inflows, despite XRP trading lower alongside the broader market.
Market watchers said the divergence reflected positioning, not fundamentals, with Bitcoin and Ethereum ETFs reacting to macro-driven rebalancing, while smaller Solana and XRP funds drew selective inflows after earlier declines.
