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Bitcoin ETFs Lead Weekly Losses as $1.42 Billion Flows Out While Altcoin ETFs Attract Capital
Exchange-traded funds (ETFs) investing in Bitcoin and Ethereum ended the final week of May under continued pressure from investor withdrawals, with combined outflows exceeding $1.6 billion as investors reduced exposure to the market's largest cryptocurrency funds.
Key Takeaways
- Bitcoin ETFs lost $1.42 billion, while Ethereum ETFs recorded $241 million in outflows, reinforcing institutional selling pressure.
- HYPE ETFs attracted $26 million and XRP ETFs gained $15.2 million, signaling a rotation toward altcoins.
- ETF flow data suggests investors may increasingly favor HYPE, XRP, and Solana over BTC and ETH.
XRP and HYPE Funds Attracted More Than $40 Million in Weekly Inflows
The holiday-shortened trading week offered little relief for cryptocurrency ETF investors. By Friday's close, the market had clearly split into two camps: heavy redemptions from Bitcoin and Ethereum products and steady, selective demand for funds tied to smaller altcoins.
Between May 25 and May 29, spot Bitcoin ETFs recorded net outflows of $1.42 billion, marking another difficult week for the largest cryptocurrency ETF category.
Spot Ethereum ETFs also remained under pressure, posting net outflows of $241 million.
In contrast, altcoin-related products showed stronger performance. Spot XRP ETFs attracted $15.2 million in net inflows, while Solana ETFs gained $2.4 million. Spot HYPE ETFs, among the newest additions to the crypto ETF market, attracted $26 million, strengthening their early leadership among newly launched altcoin products.
Bitcoin Remained at the Center of the Sell-Off
The largest share of weekly losses came from BlackRock's IBIT fund, which recorded $966.3 million in outflows. This made it the biggest source of redemptions by a wide margin and demonstrated that even the market's dominant Bitcoin ETF was not immune to the broader risk-off environment.
Three consecutive billion-dollar outflow weeks for Bitcoin ETFs. Source: SoSoValue.
Other notable outflows included:
- Grayscale's GBTC: -$175.2 million;
- Fidelity's FBTC: -$169.1 million;
- Bitwise's BITB: -$46.3 million;
- ARKB from Ark & 21Shares: -$24.7 million;
- Morgan Stanley's MSBT: -$1 million;
- Grayscale Bitcoin Mini Trust: -$33 million.
Monthly performance was even weaker. Bitcoin ETFs finished May with total net outflows of $2.43 billion. Once again, IBIT led the losses with $1.41 billion in outflows. ARKB lost $314.1 million, GBTC lost $330.3 million, and FBTC lost $274 million.
The clear exception was MSBT, which attracted $68.9 million during the month.
Ethereum ETFs Also Experienced a Difficult Week
Ethereum ETFs recorded net outflows of $241 million, extending a prolonged redemption trend through the end of the week.
BlackRock's ETHA was the primary source of outflows, particularly on Wednesday, Thursday, and Friday. Fidelity's FETH and Grayscale's Ether fund also faced significant pressure.
However, some late-week inflows were recorded in:
- Fidelity's FETH;
- BlackRock's ETHB;
- 21Shares' TETH;
- Bitwise's ETHW.
These inflows helped soften the overall picture but were not enough to change the final outcome, leaving Ethereum ETFs with a clearly negative weekly result.
Altcoin ETFs Showed Greater Strength
Among newer products, HYPE ETFs stood out the most, attracting $26 million during the week. This made HYPE the strongest altcoin ETF category by net inflows and demonstrated that investors continue looking beyond the two largest digital assets.
Since launch, HYPE ETFs have accumulated $100 million in total inflows.
HYPE ETFs have attracted $100 million since launch. Source: SoSoValue.
XRP ETFs attracted $15.2 million during the week, supported by steady inflows into products from Bitwise, Canary, Franklin, and Grayscale across multiple trading sessions.
Although the category remains much smaller than Bitcoin and Ethereum ETFs, momentum has remained positive.
Solana ETFs also strengthened their position, attracting $2.4 million in net inflows. While relatively modest, the figure indicates that investors remain willing to allocate capital to selected altcoin products.
Weekly Conclusion
The key takeaway from the week is clear: investors continue reducing exposure to Bitcoin and Ethereum ETFs, but they are not abandoning crypto ETFs altogether.
Instead, capital is rotating more selectively away from crowded large-cap products and toward smaller altcoin-focused instruments, where growth potential and investor interest remain stronger.
