Bitcoin and ether ETF outflows accelerated this week as investors rotated capital into newly launched HYPE funds and XRP-focused products. Bitcoin ETFs saw net outflows totaling $285 million, while ether ETFs bled $180 million, marking the sharpest multi-day exodus in recent weeks.
The shift signals a broadening appetite beyond the two dominant cryptocurrencies. HYPE funds, which track broader crypto indices and emerging altcoins, attracted over $400 million in new inflows. XRP funds captured $120 million, riding momentum from the Ripple token's price surge following recent regulatory clarity around its status as a non-security asset.
Spot bitcoin ETF inflows had remained robust through late 2024, but the tide turned mid-week as traders locked in gains and repositioned. The largest bitcoin ETF, iShares Bitcoin Mini Trust (IBIT), saw $150 million in withdrawals alone. Ether ETF outflows proved steeper on a relative basis, with Grayscale's Ethereum Mini Trust (ETH) dropping $95 million.
Market data shows bitcoin trading between $96,000 and $98,000, consolidating after its December rally. Ether hovered near $3,700, down 2.5 percent week-over-week. On-chain metrics reveal whale accumulation has slowed, suggesting institutional buying pressure has eased temporarily.
The rotation reflects growing conviction that smaller-cap altcoins offer better risk-reward potential in this cycle. Solana, Cardano, and Polygon tokens all posted double-digit weekly gains. XRP's 18 percent weekly climb came after the SEC's softened stance on Ripple's token, reducing legal overhang that plagued the asset for years.
Industry observers note this mirrors patterns from 2021, when retail money chased alternative tokens after bitcoin and ether consolidated. However, the scale differs markedly. ETF withdrawals this week total $465 million combined, dwarfed by altcoin inflows exce