Bitcoin ETF outflows accelerate while ether and XRP funds see modest inflows

Investor flows are highlighting a growing divergence in positioning across major crypto assets as markets navigate another bout of volatility.

Bitcoin exchange-traded funds logged fresh outflows on Tuesday, even as products tied to ether and XRP attracted net inflows, underscoring a split in how investors are allocating risk. U.S.-listed spot bitcoin ETFs saw approximately $272 million in net redemptions on Feb. 3, according to SoSoValue data, extending a pattern of distribution that has accompanied recent swings in bitcoin’s price.

The outflows came amid sharp intraday volatility, with bitcoin sliding toward $73,000 before rebounding above $76,000. Traders pointed to thin liquidity and rapidly shifting macro headlines as drivers of the whipsaw price action.

By contrast, spot ether ETFs recorded roughly $14 million in net inflows, while XRP-focused products drew close to $20 million, signaling that some investors are rotating exposure rather than exiting the crypto market altogether.

The divergence suggests a shift in risk preferences rather than a broad loss of confidence in digital assets. Bitcoin has increasingly traded as a macro-sensitive risk asset, responding quickly to equity-market stress, tighter financial conditions, and renewed concerns around technology valuations.

Tuesday’s selling pressure coincided with a sharp selloff in U.S. software stocks after Anthropic unveiled a new AI automation tool, reigniting fears that artificial intelligence could disrupt traditional software business models and weighing on broader tech benchmarks.

Overall, the flows reflect selective risk-taking rather than a blanket move to risk-off positioning. While bitcoin ETFs have absorbed the bulk of near-term de-risking, capital continues to circulate within the crypto ecosystem, favoring assets viewed as offering differentiated use cases or relative value.

About The Author

ctleditor

See author's posts