Altcoins Gain as Bitcoin ETFs See Largest Outflows in Months
Institutional capital is rotating away from Bitcoin and Ethereum ETFs at an accelerating pace. BlackRock's IBIT alone shed $1.01 billion over five sessions, while Fidelity's FBTC lost $111.5 million—marking the sector's worst week since January.
Meanwhile, altcoin-focused products are absorbing the spillover. Solana, XRP, and HYPE-related funds are drawing fresh inflows as investors seek higher-beta crypto exposure. This divergence suggests a maturing market where institutional players now diversify beyond blue-chip tokens.
The moves coincide with Bitcoin's 12% monthly drop, its steepest since FTX's collapse. 'When the tide goes out, you see who's swimming naked,' remarked one trader, referencing altcoins' relative outperformance.
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