Ether ETFs Extend Three-Day Inflow Streak as Bitcoin Loses $243 Million

Ether ETFs have extended their three-day streak of net inflows, drawing $174 million in inflows on the first trading day of 2026 according to data. This follows $161 million in inflows the prior week, signaling a return of institutional interest in Ethereum. Bitcoin, meanwhile, recorded a $243 million outflow in the latest data, indicating mixed sentiment between the two major cryptos.

Bitcoin's price has remained in a tight range between $87,500 and $93,500 over the past week, with the onchain market showing signs of exhaustion despite ETF inflows. Analysts have noted that while ETF flows provide price support, onchain capital formation remains weak. Long-term holders are increasingly realizing losses, suggesting a late-cycle market dynamic.

XRP ETFs have also seen consistent inflows, adding $48 million in the last two days alone. The total inflows since their launch in November 2025 have now surpassed $1.25 billion. This has pushed XRP's price to a one-month high near $2.35 and helped it briefly flip BNB to become the fourth-largest cryptocurrency by market cap.

Why the Move Happened

The renewed inflows into Ethereum ETFs suggest a shift in institutional appetite for the asset. Ether ETFs added $161 million in net inflows in the week ending Jan. 2, as investors rotated into the altcoin after a volatile December. Grayscale's ETHE led the inflows, followed by Bitwise's ETHW and Blackrock's ETHA.

BlackRock's IBIT also saw strong inflows, adding $287.4 million on a single day, its largest single-day inflow since October 2025. Fidelity's FBTC and Bitwise's BITB also posted significant inflows. The inflows appear to be driven by end-of-year portfolio rebalancing and tax-loss harvesting.

Ethereum's treasury firm, BitMine, has also continued to accumulate the token, holding over 4.14 million ETH. This has reinforced institutional confidence in the asset as the price approaches $3,260.

How Markets Responded

Despite the inflows, the broader crypto market remains range-bound. Bitcoin has traded between $87,500 and $93,500 for much of January 2026, with little sign of a breakout. Ethereum has similarly held near $3,200, with technical indicators showing a flip above the 50-day EMA.

XRP's price, however, has seen more dynamic movement. The token surged 12% in early January, reaching $2.42 before settling near $2.35. This rally was supported by ETF inflows, a technical breakout, and a reduction in short positions, which led to $250 million in short liquidations.

The broader market has also turned bullish, with Bitcoin crossing $90,000 and altcoins posting gains across the board. Solana and BNB have both posted gains, and smaller altcoins like Cardano and Dogecoin have seen double-digit moves.

What Analysts Are Watching

Analysts are closely watching onchain indicators, which have weakened despite the ETF inflows. Bitcoin's realized capitalization has turned negative, and long-term holders are increasingly realizing losses. This suggests a shift from a flow-driven to a patience-driven market.

Standard Chartered has forecasted a potential $8 price target for XRP by the end of 2026, based on $4 billion to $8 billion in spot ETF inflows. The bank argues that XRP is now in a new phase, free from legal uncertainties that previously capped demand.

Bitcoin ETFs are also expected to face renewed pressure as economic data and interest rate expectations become more influential. QCP Capital has noted that liquidity has normalized, but recent sessions have shown a tendency to fade rallies.

Institutional positioning in options markets has also become more constructive, with reduced put skew and increased long-dated upside exposure. This suggests that while the market is cautious, it is not entirely bearish.

The coming weeks will be critical in determining whether the current inflows translate into sustained price action or whether the market reverts to a consolidation phase. Analysts have emphasized the importance of onchain capital formation as a key determinant of the next phase of the crypto cycle.