Bitcoin ETF outflows deepen as ether and XRP funds quietly attract inflows

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coindesk
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3 hours ago


What to know : U.S.-listed spot bitcoin ETFs saw about $272 million in net outflows on Feb. 3, even as bitcoin’s price swung sharply between roughly $73,000 and $76,000. In contrast, spot ether ETFs drew about $14 million in net inflows and XRP-linked products attracted nearly $20 million, signaling investors are rotating within crypto rather than exiting the asset class. The split in flows shows bitcoin’s growing sensitivity to broader macro and tech-market stress, while capital shifts toward crypto assets seen as offering distinct use cases or relative value.

Bitcoin exchange-traded funds saw fresh outflows on Tuesday even as ether- and XRP-linked products drew net inflows, indicative of a growing split in how investors are positioning across major crypto assets during the latest bout of market volatility.

U.S.-listed spot bitcoin ETFs recorded roughly $272 million in net outflows on Feb. 3, according to data compiled by SoSoValue, extending a pattern of distribution that has emerged during bitcoin’s recent price swings.

The withdrawals came as bitcoin whipsawed sharply, sliding toward $73,000 before rebounding above $76,000, a move traders attributed to thin liquidity and fast-moving macro headlines.

In contrast, spot ether ETFs posted net inflows of about $14 million on the day, while XRP-focused products attracted nearly $20 million, suggesting some investors are rotating exposure rather than exiting crypto markets outright.

The divergence reflects shifting risk preferences rather than a wholesale loss of confidence in digital assets.

Bitcoin has increasingly traded as a macro-sensitive risk asset, reacting quickly to equity-market stress, tighter financial conditions and concerns around technology valuations.

Tuesday’s selling coincided with a sharp selloff in U.S. software stocks after a new AI automation tool from Anthropic reignited fears that artificial intelligence could disrupt traditional software business models, pressuring broader tech benchmarks.

The flows also echo a broader theme visible across markets: selective risk-taking rather than blanket risk-off behavior. While bitcoin ETFs have borne the brunt of near-term de-risking, capital is still moving within the crypto complex, favoring assets perceived as offering distinct use cases or relative value.

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