U.S.-listed cryptocurrency exchange-traded funds (ETFs) are currently exhibiting significant outflows, with Bitcoin spot ETFs facing the largest declines. As of February 18, Bitcoin ETFs recorded an alarming $133.3 million in daily net outflows. This downturn was primarily driven by BlackRock’s IBIT ETF and Fidelity’s FBTC, which lost $84.2 million and $49 million, respectively. Despite these challenges, total net assets in Bitcoin funds remain at $83.6 billion, accounting for approximately 6.3% of Bitcoin’s overall market capitalization. This recent trend suggests that institutional investors are opting to reduce their exposure rather than take advantage of market dips.
Ethereum products are not faring any better, following a similar trajectory with U.S. ETH spot ETFs seeing net outflows of $41.8 million on the same day. BlackRock’s ETHA experienced the brunt of these outflows, shedding nearly $30 million. Currently, total net assets across Ethereum funds sit at $11.1 billion, equating to about 4.8% of Ethereum’s market cap. This continued erosion coincides with Ethereum trading below the $2,000 mark and failing to gain momentum, despite broader market expectations for potential interest rate cuts later this year.
XRP ETFs also experienced a decline, with daily net outflows totaling $2.2 million. The overall net assets across XRP funds are just over $1 billion, representing approximately 1.2% of XRP’s market cap. This bearish sentiment is reflected in XRP’s price action, which has seen a decrease of over 4% on the day.
In contrast to these trends, Solana ETFs showed strength, with U.S. SOL spot ETFs recording $2.4 million in net inflows, bringing cumulative inflows to nearly $880 million. Bitwise’s BSOL ETF led this effort, attracting $1.5 million in new capital. While these inflows are relatively modest in absolute terms, they mark a notable deviation from the generally risk-averse posture seen in Bitcoin and Ethereum products.
Further down the line, smaller altcoin ETFs, such as those linked to LINK, also reported marginal inflows. However, the prevailing sentiment remains one of selective exposure rather than a widespread accumulation of assets.
The current flow of funds indicates that investors are subtly rotating within the crypto space rather than exiting entirely. As macroeconomic uncertainty continues and the dollar strengthens, ETF flows are providing a timely insight into institutional confidence, revealing where it is dwindling and where it persists.
