Bitcoin and Ether ETFs Report Combined $713 Million in Outflows Amid Market Turmoil

U.S. spot bitcoin and ether exchange-traded funds (ETFs) recorded a combined net outflow of around $713 million on Tuesday. This follows continued selling pressure since last week. The outflows were driven by macroeconomic and geopolitical concerns.

Bitcoin prices fell below $89,000 after recently climbing above $97,000. Ether also declined, trading below $3,000. These movements reflect a broader market drawdown. The downturn has been attributed to ongoing trade tensions and uncertainty around global liquidity.

Among the top performers in outflows, Grayscale's GBTC led with $160.8 million in withdrawals. Fidelity's FBTC also saw $152 million in outflows. BlackRock's ETHA recorded $92.3 million in net outflows, marking the end of a five-day streak of inflows.

Why Did This Happen?

Analysts point to macroeconomic and geopolitical factors as the key drivers of the outflows. A trade dispute between the U.S. and the EU over Greenland has shown little sign of resolution. This uncertainty has led to broader market volatility. In addition, panic selling of Japanese government bonds has impacted global liquidity.

Jeff Mei of BTSE noted that Trump's tariff threats were poorly received by markets. However, many believe Trump will moderate these threats to avoid damaging global markets. Mei added that traders are closely watching how Europe will respond to Trump's demands.

How Did Markets React?

The ETF outflows are part of a broader trend of investor derisking. LVRG Research's Nick Ruck explained that the outflows reflect a temporary institutional response to geopolitical tensions. He emphasized that this does not represent a rejection of crypto's long-term value proposition.

The outflows are seen as a healthy consolidation phase for the crypto market. Strong institutional infrastructure remains intact, and renewed inflows are expected once macroeconomic signals become clearer. For now, investors are reducing exposure in response to uncertainty.

Solana ETFs showed a different trend, with $3.80 million in inflows on Tuesday. This follows $2.22 million in outflows the previous week. The inflow suggests steady institutional interest in Solana amid a broader market downturn. However, retail sentiment remains weak, with declining open interest and large long liquidations.

XRP ETFs saw a record $53.3 million in net outflows on Tuesday. This was the largest single-day outflow for XRP funds. Despite the outflow, cumulative XRP ETF inflows have exceeded $1.5 billion. This reflects growing institutional demand for XRP exposure through regulated vehicles.

The XRP ETFs are being closely watched as they offer a regulated pathway for investors to access the token. Institutional investors are using ETFs to express a contrarian view as XRP prices fall. This trend shows that new capital is entering the market despite technical sell signals.

The XRP price remains under pressure, trading in the low-$2 range. Over the past three months, XRP has fallen about 18.11%. This has led to a divergence between token prices and ETF assets under management. Some investors are using ETFs to dollar-cost average into weakness.

What Analysts Are Watching Next

Analysts are watching for signs of a resolution in the U.S.-EU trade dispute. A resolution could ease market pressure and lead to renewed inflows into crypto ETFs. Additionally, the response from Europe to Trump's tariff threats will be a key factor.

Institutional interest in Solana and XRP remains mixed. While Solana ETFs show some inflows, the overall technical outlook is bearish. The asset is facing key support levels at $112–$116 and resistance at $145–$148. A breakdown below these levels could lead to a deeper correction.

For XRP, long-term scenarios suggest potential for a 5x–6x move if the token rises toward $12.50. This would be driven by ETF adoption and institutional demand. However, such a move is not guaranteed and depends on regulatory stability and global adoption of XRP as a settlement asset.

Cloud-yield and cloud-mining platforms are also being watched for their potential to disrupt or distort the XRP market. These platforms offer unrealistic returns and are not aligned with the regulated ETF trend. Investors are cautioned to avoid such schemes.

The overall risk profile for XRP ETFs includes regulatory uncertainty, market volatility, and liquidity risk across different products. XRPI and XRP show strong liquidity, while XRPR faces thinner trading volumes. Leveraged XRP ETFs add another layer of complexity by amplifying price swings.

For disciplined investors, XRP ETFs are considered speculative buys. They offer exposure to potential ETF-driven adoption but come with significant downside risk. A controlled, high-risk allocation is recommended for those seeking optionality in a volatile market.