US Spot Bitcoin ETFs Suffer $60.4M Outflow While Altcoin Capital Increases

Despite a modest inflow from BlackRock's IBIT fund, US spot Bitcoin ETFs experienced significant outflows totaling $60.48 million on Monday. In contrast, altcoin ETFs, particularly those connected to XRP and Solana, have seen a surge in capital, reflecting a shift in investor interest amid Bitcoin's fluctuating market.

Key Takeaways

US spot Bitcoin ETFs faced a net outflow of $60.48 million, with significant losses mainly from Grayscale’s GBTC and Fidelity's FBTC.
BlackRock’s IBIT fund contributed a positive inflow of $28.76 million.
XRP spot ETFs have amassed over $900 million in institutional investments since their launch.
Solana's ETFs also marked a noteworthy inflow, highlighting growing interest in altcoins.
Analysts remain optimistic about the future of crypto ETFs, suggesting a healthy rebalancing in the market.

ETFs flows

US Spot Bitcoin ETFs Face Outflows

On Monday, US spot Bitcoin exchange-traded funds (ETFs) recorded a net outflow of $60.48 million, despite the positive contribution from BlackRock’s IBIT fund, which saw an inflow of $28.76 million on the same day.

According to data from SoSoValue, Grayscale's GBTC experienced the highest outflow, losing $44.03 million. Fidelity's FBTC fund also reported substantial outflows, totaling $39.44 million.

In contrast, Ethereum spot ETFs enjoyed a net inflow of $35.5 million yesterday, largely driven by BlackRock’s ETHA, which attracted $23.7 million.

Altcoin Bitcoin ETFs Surge with XRP Leading

Ripple's XRP spot ETFs have drawn over $900 million in institutional capital since their debut last month, indicating a capital shift in response to Bitcoin's fluctuating market conditions.

Notably, XRP has recorded the largest altcoin ETF debut so far, with an impressive $38.04 million inflow from four different funds on Monday.

XRP inflows

Additionally, Solana ETFs achieved a net inflow of $1.18 million in a single day, primarily from Fidelity’s FSOL fund. Overall, Solana has drawn a cumulative net inflow of $640.06 million since it launched on October 28.

Data from CoinMarketCap indicates that XRP surged to a peak of $2.20 at the start of December but has since experienced a 1.54% decline, currently trading at approximately $2.05. Meanwhile, Solana has gained nearly 5% over the last week, with its price sitting at $133.16 at the time of this report.

Outlook for Crypto ETFs in 2024

Katherine Dowling, an executive at Bitwise Asset Management, shared her insights with DL News, predicting continued growth for the crypto ETF sector. She stated, “It is a good starter kit for many investors to gain exposure,” emphasizing that altcoin funds such as Solana and XRP possess strong fundamentals and potential for growth.

Analysts at Bitfinex see this trend as a healthy tactical rebalancing in the market, telling Cryptonews, “the spot ETF channel remains intact.”

On Bitcoin’s long-term prospects, they expressed confidence, explaining that as larger investors increasingly embrace ETF wrappers, Bitcoin is set to strengthen its role as a regulated store of value. This shift indicates that future inflows into Bitcoin could become more substantial and stable.