Record Outflows Hit U.S. Bitcoin ETFs as Investors Shift Toward Alternative Crypto Funds

The U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have recorded their largest-ever wave of withdrawals, with a combined outflow of $3.79 billion, surpassing the previous high of $3.56 billion seen in February. The sharp decline highlights a growing shift in investor sentiment as market uncertainty weighs on the two biggest cryptocurrencies by market value.

BlackRock’s IBIT, currently the world’s largest publicly traded Bitcoin fund, has been hit particularly hard. The ETF has already seen more than $2 billion in redemptions this month, according to data from SoSoValue, signaling that even leading institutional products are not immune to the downturn. On Thursday alone, the 11 spot Bitcoin ETFs posted more than $900 million in outflows, marking the second-largest single-day withdrawal since their debut in January 2024.

Ether ETFs are facing similar pressure, also experiencing record outflows totaling $1.79 billion. The synchronized withdrawals from both Bitcoin and Ethereum-based products indicate a broader retreat from the top-tier digital assets, likely driven by market pullbacks, profit-taking, or shifting risk profiles among institutional and retail investors.

Interestingly, while Bitcoin and Ether ETFs struggle, newly introduced Solana and XRP funds are drawing fresh capital. Solana ETFs have already accumulated $300.46 million in net inflows, and XRP ETFs have attracted $410 million. The contrasting performance suggests that investors may be rotating toward emerging alternatives in hopes of capturing higher upside potential or diversifying away from the established market leaders.

Overall, the record-breaking ETF outflows underscore the rapidly changing landscape of crypto investment trends, with sentiment moving away from Bitcoin and Ethereum in favor of newer, fast-growing blockchain assets.