ETF Investors Retreat from Bitcoin and Ether While Altcoin Funds Attract Capital

As 2026 began, U.S. spot Bitcoin and Ether exchange-traded funds (ETFs) faced significant challenges. In the first full week of trading, nearly $750 million was withdrawn from these two prominent crypto-linked ETF categories.

Key Takeaways:

Bitcoin and Ether ETFs experienced close to $750 million in outflows during the opening week of 2026.
Bitcoin ETFs led the decrease, despite a notable inflow at the beginning of the week.
In contrast, XRP and Solana ETFs drew fresh investments, indicating a shift toward altcoin funds.

While Bitcoin and Ether faced declines, newly established funds associated with XRP and Solana recorded positive inflows and stronger trading activities.

ETF Investors Pull Back From Bitcoin and Ether as Altcoin Funds Buck Trend

Bitcoin and Ether ETFs Experience Significant Outflows

Recent data from SoSoValue reveals that combined net outflows from spot Bitcoin and Ether ETFs reached $749.6 million between January 6 and January 9.

Dominating this trend, Bitcoin funds saw a reduction of $681 million, following four consecutive days of redemption.

The downturn occurred despite a robust start to the week, where Bitcoin ETFs secured nearly $700 million in inflows on January 5, the only day that showcased positive momentum during this timeframe.

The selling pressure escalated midweek, with January 7 alone witnessing outflows of $486.1 million—the largest single-day reduction throughout the week.

BlackRock’s IBIT, recognized as the largest spot Bitcoin ETF by assets, faced $252 million in withdrawals on January 9.

Meanwhile, Bitwise’s BITB reported minor declines, while Fidelity's FBTC stood out with modest inflows on the same day.

Despite the downward trend, spot Bitcoin ETFs remain integral to the market, collectively holding approximately $116.9 billion in net assets, accounting for about 6.5% of Bitcoin’s total market cap. Cumulatively, since their launch in January 2024, they have amassed net inflows exceeding $56 billion.

Spot Ether ETFs followed a comparable trajectory, experiencing $68.6 million in net outflows after initial positive inflows were overshadowed by significant selling during the final three trading days. BlackRock’s ETHA experienced the most significant outflows, closely followed by Grayscale’s ETHE. The nine existing Ether ETFs manage around $18.7 billion in assets, making up just over 5% of Ether’s market value.

XRP ETFs Stand Out with Record Volume and New Inflows

Even as investors reduced their positions in the two leading cryptocurrencies, interest in altcoin-linked ETFs seems to be growing.

Spot XRP ETFs gained $38.1 million in net inflows during the week, achieving their highest weekly trading volume of $219 million since launch.

This increase suggests a growing institutional interest as these products become more popular following their introduction in late 2025.

Canary Capital’s XRPC maintains its status as the largest XRP fund in terms of assets, with notable competitors from Bitwise and Franklin Templeton.

In total, XRP ETFs have generated over $1.2 billion in net inflows, with total assets nearing $1.5 billion.

Likewise, Solana ETFs attracted new investments, with $41.1 million coming in over the same period.

Bitwise’s BSOL continues to be the dominant product in this category, showcasing a significant lead over its competitors as investors selectively transition into alternative crypto investments.