Investors Exit Bitcoin and Ether ETFs, Pivot to HYPE and Other Tokens

US-listed spot cryptocurrency ETFs give investors price exposure through conventional brokerage accounts, making their flows a closely watched gauge of institutional demand and risk appetite. Ether and XRP funds had attracted money for 12 and 11 consecutive sessions, respectively, before both runs ended. The reversal, alongside renewed demand for Bitcoin products, points to a rotation toward the market’s most liquid digital asset as cryptocurrency prices broadly retreated.

On Sept. 2, US spot Ether ETFs posted $48.08 million in net outflows after drawing $1.62 billion during their 12-session streak, according to SoSoValue. XRP ETFs lost $7.2 million, ending an 11-session run that attracted about $170 million. Bitcoin ETFs reversed a $236.5 million outflow the previous day with $101.2 million of net inflows, led by $115.45 million into BlackRock’s IBIT. Over seven days, Ether fell 3.4%, XRP 2.4% and Bitcoin 1.3%, CoinGecko data showed.

The U.S. Securities and Exchange Commission cleared spot bitcoin exchange-traded products in January 2024, followed by spot ether funds that began trading that July, giving investors regulated brokerage access to the two largest cryptocurrencies. Daily creations and redemptions in products run by BlackRock, Fidelity, Grayscale and others have since become a key gauge of institutional demand and short-term risk appetite, particularly when crypto prices turn volatile.

On Wednesday, July 29, U.S. spot bitcoin ETFs posted $32.1 million in net inflows, ending four consecutive trading days of withdrawals. BlackRock’s iShares Bitcoin Trust (IBIT) led subscriptions, offsetting redemptions from Fidelity’s FBTC and the ARK 21Shares Bitcoin ETF (ARKB). Spot ether ETFs, by contrast, swung to $18.65 million in net outflows. The divergence came as bitcoin and ether edged lower, suggesting demand for bitcoin-linked funds recovered despite the modest pullback in token prices.

Spot cryptocurrency ETFs have become an important gateway for traditional institutional investors seeking exposure to digital assets, with fund flows offering a direct gauge of Wall Street’s risk appetite and confidence in cryptocurrencies. After several weeks of weak flows, the market has recently shown signs of a reversal. Daily net flows into and out of spot bitcoin and ether ETFs have therefore become key indicators of the crypto market’s short- and medium-term direction and institutional activity.

U.S. spot bitcoin ETFs recorded net outflows of $85 million on Wednesday, July 8, 2026, ending a three-day inflow streak, according to market data. Spot ether ETFs bucked the trend with $70.5 million in net inflows, marking a fifth consecutive trading day of gains. Fidelity Investments’ ether fund, FETH, was the main driver, attracting as much as $69.2 million in a single day and underscoring strong buying support.

Hawkish signals from the U.S. Federal Reserve rapidly dimmed expectations for interest-rate cuts this year, prompting markets to reconsider even the possibility of a rate increase. Persistently high rates raise funding costs and reduce the appeal of risk assets. Flows into spot Bitcoin and Ether ETFs have therefore become an important gauge of crypto demand and the durability of the market’s rebound.

The latest data showed that U.S. spot Bitcoin and Ether ETFs recorded combined net outflows of $111 million on the Wednesday cited in the report. The withdrawals came as the Fed turned more hawkish and hopes for rate cuts evaporated, suggesting institutional investors were reducing their crypto exposure. The outflows also created a stronger headwind for the recent rebounds in Bitcoin and Ether prices.

US spot cryptocurrency ETFs have become a key channel for institutions allocating capital to digital assets, and their fund flows are often viewed as a gauge of market risk appetite. Bitcoin products command the most assets, but persistent redemption pressure on Grayscale’s legacy GBTC contrasts sharply with inflows into newer products from BlackRock and others.

On Monday, July 20, US spot Bitcoin ETFs recorded combined net outflows of $64 million, driven mainly by $124 million in net outflows from Grayscale’s GBTC. BlackRock’s IBIT still attracted $66 million in net inflows. Over the same period, spot ETFs for Ether, XRP, Solana and Hyperliquid all posted net inflows.

U.S. spot Bitcoin ETFs have served as Wall Street’s main conduit for crypto demand since their January 2024 launch. The sustained withdrawals suggest risk appetite is shifting as AI and semiconductor stocks rally. However, Bloomberg analysts said most existing investors have stayed put and that some of the outflows may reflect the unwinding of arbitrage trades.

The selloff initially set a record with about $2.8 billion in net outflows over nine consecutive trading days, including $1.3 billion in a single week. The streak later extended to 13 trading days, with cumulative outflows reaching $4.4 billion. Bitcoin briefly fell below $70,000, while concerns that Strategy might sell its holdings fueled volatility. Some analysts nevertheless view the persistent outflows as a contrarian indicator that the market may be approaching a local bottom.

The U.S. Securities and Exchange Commission approved spot Bitcoin and Ether ETFs in January and July 2024, respectively, giving investors access to crypto exposure through traditional brokerages. Creations and redemptions in these products affect fund holdings and market liquidity, making daily flows at major firms such as BlackRock and Fidelity an important gauge of institutional demand and pressure on crypto prices.

According to SoSoValue, spot Bitcoin ETFs recorded net inflows of $3.05 million on June 4, ending 13 consecutive days of outflows totaling more than $4.4 billion since mid-May. BlackRock’s IBIT attracted $47.66 million. Ether ETFs drew $19.3 million after 17 straight days of outflows, with the entire inflow coming from ETHA. Three HYPE ETFs launched on May 12 took in $12.15 million that same day, lifting their assets to $185 million. Each has posted net inflows every day since its debut.

CoinShares' weekly fund-flows report tracks digital-asset investment products worldwide, including ETFs and ETPs, and is a key gauge of institutional investors' risk appetite. As the United States advanced the CLARITY Act, rising geopolitical risks linked to Iran prompted a shift toward safe-haven assets and weighed on major cryptocurrencies including Bitcoin.

CoinShares said on May 26, 2026, that cryptocurrency investment products recorded net outflows of $1.47 billion in the preceding week, marking a second consecutive week of withdrawals. Bitcoin products lost about $1.3 billion, while Ether products shed $223 million. Bucking the trend, XRP and Solana attracted $31.8 million and $7.7 million, respectively, while nine assets recorded inflows exceeding $1 million.

U.S. spot Bitcoin and Ether ETFs are key channels for institutional capital moving into and out of the crypto market, and their flows are often viewed as a gauge of demand. The products had attracted inflows for four consecutive weeks, but the U.S.-Iran conflict drove up oil prices and inflation concerns. Markets even shifted from expecting a Federal Reserve rate cut in June to anticipating a rate increase, dampening risk appetite.

In the week ended March 27, 2026, the 11 U.S. spot Bitcoin ETFs recorded net outflows of $296.18 million, while Ether ETFs lost more than $200 million, according to SoSoValue. Bitcoin ETFs saw $225.5 million in outflows on March 27 alone, with $201.5 million coming from BlackRock’s IBIT. On Monday, March 30, BTC rose nearly 2% and ETH gained more than 3%, but the fund outflows limited the scope for further gains.

The U.S. Securities and Exchange Commission approved the first spot Bitcoin ETFs in January 2024, followed by the launch of spot Ether ETFs in July that year, allowing institutions to gain exposure to the two largest crypto assets through regulated funds. ETF flows have consequently become a key gauge of Wall Street demand and market risk appetite.

SoSoValue data through the end of February 2026 showed that investors had withdrawn money from U.S.-listed products for four consecutive months since November 2025. Spot Bitcoin ETFs recorded net outflows of $6.39 billion, while spot Ether ETFs lost $2.76 billion, for a combined $9.15 billion. This marked the longest streak of monthly outflows for Bitcoin funds since their January 2024 debut.