U.S. cryptocurrency ETFs, including BTC, ETH, SOL, and XRP, have seen $4.4 billion in outflows over 13 days, while HYPE ETFs show resilience.
U.S. cryptocurrency ETFs face a sharp downturn as $4.4 billion leaves the market
U.S. spot bitcoin ETFs have encountered a persistent outflow streak, with a total of $4.37 billion withdrawn over the past 13 days. This trend has significantly impacted total assets, which dropped from $104.29 billion to $82.83 billion since mid-May.
On Wednesday, the largest bitcoin ETF, BlackRock's IBIT, saw redemptions of $342 million, contributing to the overall market decline. Other products, including ether, solana, and XRP ETFs, also experienced losses as cryptocurrency prices fell.
In total, bitcoin ETFs alone lost $396.6 million on Wednesday, marking a record streak of outflows. The continued decrease in bitcoin's price, now around $65,462, has further exacerbated the situation, with assets under management (AUM) now making up only 6.36% of bitcoin's market cap, down from over 7% in May.
Ether ETFs faced similar challenges, with a total loss of $52.94 million, primarily driven by BlackRock's ETHA, which accounted for nearly all of this amount. Solana and XRP ETFs also reported losses of $12.74 million and $5.34 million, respectively, as the overall market sentiment turned negative.
In contrast, Hyperliquid's HYPE ETFs have emerged as a notable exception, continuing to attract new investments. On Wednesday, the HYPE ETF gained $2.99 million, bringing its cumulative inflows to $139.51 million since its launch on May 12. This fund's success stands out against the backdrop of widespread redemptions in other crypto ETF categories.
As the market struggles, Citi indicated that the negative flows from bitcoin ETFs are influencing market sentiment and account for about 45% of weekly price fluctuations in BTC. The bank suggests that investor sentiment is likely to remain subdued as long as these outflows persist and regulatory developments in the U.S. remain uncertain.
