BlackRock’s iShares Bitcoin Trust saw over $250 million in outflows on a day marking one of the worst for Bitcoin ETFs since February 2025, amid broader market declines. Ethereum funds lost $260 million, while the new XRP ETF recorded a strong $58 million debut, highlighting shifting investor interests in the crypto space.
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Bitcoin ETFs experienced $867 million in outflows on Thursday, the second-highest in their history.
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Ethereum ETFs followed with $260 million in losses, reflecting risk aversion among investors.
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The XRP ETF launched with $58 million in volume, the best debut of any ETF in 2025 per Bloomberg analyst Eric Balchunas.
Discover the latest Bitcoin ETF outflows hitting BlackRock’s IBIT hard amid market volatility. Explore XRP ETF’s record inflows and what it means for crypto investments—stay ahead with expert insights today.
What Caused the Recent Bitcoin ETF Outflows?
Bitcoin ETF outflows surged to nearly $867 million across 11 spot Bitcoin funds on Thursday, driven by a broader market downturn and economic uncertainties in the U.S. This marked the second-highest outflow total in the 22-month history of these funds, according to data from UK asset manager Farside Investors. The decline coincided with Bitcoin dropping below $98,500 for the first time in over six months, approximately 20% off its early October record high, as reported by crypto markets data provider CoinGecko.
How Did the XRP ETF Perform in Its Debut?
The Canary Capital spot XRP ETF, ticker XRPC, made a remarkable entrance with $58 million in first-day trading volume, setting a 2025 record for ETF debuts. This figure surpassed initial projections of around $17 million from Bloomberg Senior ETF Analyst Eric Balchunas, who noted on social media: “Congrats to $XRPC for $58m in Day One volume, the most of any ETF launched this year (out of 900), BARELY edging out $BSOL’s $57m.” The XRP fund’s performance narrowly outpaced the Bitwise Solana Staking ETF (BSOL), which launched two weeks earlier with $57 million. In contrast, BSOL has since accumulated over $550 million in net inflows, though it only saw $1.5 million on the same day. These developments underscore growing interest in alternative cryptocurrencies like XRP amid Bitcoin’s struggles. Farside Investors’ data highlights how investor sentiment can shift rapidly in volatile markets, with XRP benefiting from its unique position in cross-border payments and regulatory clarity.
Frequently Asked Questions
What Impacted Bitcoin and Ethereum Prices During These ETF Outflows?
Bitcoin fell below $97,000 by Friday morning, hitting a six-month low, while Ethereum and Solana reached four- and five-month troughs respectively. These drops, amounting to about 20% from Bitcoin’s peak, stem from an exodus from risk assets like tech stocks, fueled by U.S. economic and political instability, as tracked by CoinGecko.
Why Is the XRP ETF’s Launch Significant for Crypto Investors?
The XRP ETF’s $58 million debut signals strong demand for diversified crypto exposure beyond Bitcoin and Ethereum. As Bloomberg’s Eric Balchunas pointed out, it leads all 2025 ETF launches, offering investors a regulated way to access XRP’s potential in global finance through a familiar ETF structure that’s easy to trade on major exchanges.
Key Takeaways
- Major Outflows in Established Funds: BlackRock’s iShares Bitcoin Trust (IBIT) led with over $250 million in losses, followed by Fidelity’s FBTC at $119 million, contributing to a $867 million total for Bitcoin ETFs and $260 million for Ethereum funds.
- Contrast with New Entrants: While legacy funds bled assets, the XRP ETF’s record $58 million volume shows investors pivoting to emerging opportunities, outshining even the recent Solana ETF launch.
- Market Volatility Insights: Broader declines in digital assets reflect risk-off behavior; monitor U.S. economic indicators for potential recovery signals in Bitcoin prices.
Conclusion
The recent Bitcoin ETF outflows, particularly from BlackRock’s iShares Bitcoin Trust and other major funds, reveal heightened market sensitivity to economic pressures, with total losses exceeding $1.1 billion across Bitcoin and Ethereum products. Yet, the robust XRP ETF inflows of $58 million on debut offer a counterpoint, demonstrating resilience in select altcoins amid volatility. As crypto markets evolve, investors should track regulatory developments and macroeconomic trends for informed positioning, potentially capitalizing on diversification strategies in the coming months.
In the broader context of cryptocurrency investments, Thursday’s events highlight a pivotal moment. BlackRock’s iShares Bitcoin Trust, managing over $80 billion in assets, has now seen more than $1 billion in outflows over the last 13 trading days, signaling waning enthusiasm for spot Bitcoin exposure. Fidelity’s Wise Origin Bitcoin Fund (FBTC) mirrored this trend with over $681 million in recent losses. These figures, compiled by Farside Investors, underscore the interconnectedness of ETF flows and underlying asset prices. Bitcoin’s plunge below $98,500, and further to under $97,000, erased gains from its early October peak, where it had hovered near record levels driven by institutional adoption.
Ethereum funds faced similar headwinds, shedding $260 million as ETH hit a four-month low. Solana, another high-profile altcoin, dropped to a five-month nadir, reflecting a sector-wide risk aversion. This exodus extends beyond crypto; traditional tech stocks also declined, pointing to a macroeconomic flight to safety. U.S. political uncertainties and economic data releases have amplified these pressures, prompting investors to reassess high-volatility holdings.
Amid this downturn, the launch of the Canary Capital XRP ETF provided a bright spot. Opening to $58 million in volume—far exceeding Eric Balchunas’s $17 million forecast—the fund quickly surpassed the Bitwise Solana Staking ETF’s $57 million debut. Balchunas, a respected voice in ETF analysis, emphasized the XRP fund’s standout performance among over 900 launches in 2025. XRP’s appeal lies in its utility for international transactions, bolstered by ongoing legal resolutions that enhance its legitimacy. Farside Investors’ tracking confirms the ETF’s immediate success, with trading activity clearing initial estimates in under 30 minutes.
For context, the Solana ETF (BSOL) has built momentum post-launch, amassing $550 million in inflows despite a modest $1.5 million on Thursday. This comparison illustrates varying investor appetites: while Bitcoin and Ethereum ETFs grapple with redemptions, newer products tied to utility-focused tokens like XRP and Solana attract fresh capital. Bloomberg Intelligence reports suggest such launches could catalyze broader adoption, providing retail and institutional investors with accessible entry points without direct custody complexities.
Expert commentary from sources like CoinGecko reinforces the data-driven narrative. Their real-time market tracking shows Bitcoin’s 20% retreat from highs as a classic correction phase, often preceding rebounds in bull cycles. Farside Investors, specializing in digital asset flows, notes that Thursday’s outflows rank just behind a February 2025 episode, when similar economic jitters triggered mass exits. Eric Balchunas’s observations add credibility, as his ETF volume analyses are widely referenced in financial circles.
Looking at historical patterns, spot Bitcoin ETFs have collectively managed trillions in trading since inception, but sustained outflows like these—totaling over $1.1 billion in a single day—can pressure prices further. BlackRock’s IBIT, as the largest with $80 billion AUM, bears significant weight; its $250 million loss alone represents a notable dent. Fidelity’s FBTC, second in size, lost $119 million, compounding the sector’s challenges.
The XRP ETF’s debut, however, injects optimism. With Ripple’s XRP positioned for real-world applications in remittances and banking, the ETF format democratizes access. Balchunas highlighted its edge over competitors, noting a $20 million gap to third place. This momentum could encourage similar products for other altcoins, diversifying the ETF landscape beyond BTC and ETH dominance.
Institutional perspectives, drawn from asset managers like Farside, emphasize monitoring inflows as leading indicators. While Thursday was brutal for established funds, the XRP success story suggests selective opportunities persist. Investors navigating this environment should prioritize risk management, perhaps allocating to high-conviction assets like XRP amid Bitcoin’s correction.
Overall, these ETF dynamics reflect crypto’s maturation. From BlackRock’s outflows to XRP’s inflows, the market is segmenting based on fundamentals and sentiment. As 2025 progresses, expect continued scrutiny of flow data from reliable trackers like Farside and CoinGecko to gauge directional shifts.
