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Bitcoin ETFs Lost $1.26 Billion While XRP and HYPE Funds Attracted Fresh Investments
During a difficult week for crypto ETFs, institutional investor sentiment shifted sharply: more than $1.2 billion flowed out of Bitcoin ETFs, while Ethereum-based products extended their prolonged decline. At the same time, capital continued flowing into $XRP, Solana, and Hyperliquid-related products, highlighting growing interest in alternative crypto narratives.
Key Takeaways:
- Bitcoin ETFs lost $1.26 billion, primarily due to a massive $1 billion outflow from BlackRock’s IBIT.
- Ethereum ETFs lost $216 million, while $XRP and Solana products gained $22 million and $15.6 million respectively.
- $HYPE-related ETF products attracted $72.4 million in inflows as investors rotated toward alternative crypto growth narratives.
$HYPE ETFs Attracted $72 Million as Investors Moved Away from Bitcoin and Ethereum
The contrast between digital asset exchange-traded funds (ETFs) from May 18 to May 22 could hardly have been sharper. While Bitcoin and Ethereum experienced aggressive institutional selling, smaller ecosystem-focused products quietly attracted fresh demand.
Spot Bitcoin ETFs recorded net outflows of $1.26 billion during the week, making it one of the weakest weeks of 2026. Most of the selling pressure came from IBIT by BlackRock, which lost $1.01 billion over five days.
It was followed by FBTC from Fidelity Investments with $111.5 million in outflows, while ARKB from Ark & 21Shares lost another $106.8 million. Additional outflows affected BITB from Bitwise, HODL from VanEck, EZBC from Franklin, BRRR from Valkyrie, and BTCO from Invesco.
MSBT from Morgan Stanley stood out as the only positive exception, attracting a modest $1.1 million inflow during an otherwise difficult week for Bitcoin products.
A mixed May for Bitcoin ETFs: $776.6 million in inflows versus $2.26 billion in outflows. Source: SoSoValue
The scale of outflows reflected a broader institutional risk-off trend rather than isolated weakness in individual funds. Trading activity remained elevated throughout the week, reaching $9.27 billion, indicating active portfolio rotation rather than a full market exit.
Spot Ethereum ETFs also faced persistent pressure, recording $216 million in net outflows. The category extended its prolonged losing streak as institutional investors continued reducing exposure to Ethereum-related products.
ETHA from BlackRock consistently led weekly declines, while FETH from Fidelity and Ethereum products from Grayscale also posted notable outflows. ETHB from BlackRock occasionally attracted inflows and acted as a limited stabilizer, but not enough to reverse the broader trend.
Sentiment Shifted Sharply Beyond Bitcoin and Ethereum
Spot $XRP ETFs attracted $22 million in net inflows during the week, continuing a steady increase in institutional interest. Products from Canary, Franklin, and Bitwise all contributed to the gains as investors maintained positions in $XRP-linked funds despite broader market weakness.
These flows suggest growing confidence in the long-term utility of $XRP, especially amid increasing optimism regarding regulatory clarity.
Solana ETFs also remained positive, recording $15.6 million in net inflows for the week. Fidelity’s FSOL and Bitwise’s BSOL generated most of the growth, while periodic inflows into VanEck and 21Shares products confirmed sustained investor interest in the Solana ecosystem.
Perhaps the strongest relative performance came from $HYPE-related ETFs, which attracted a substantial $72.4 million in net inflows during the week. The resilience of this category highlighted clear investor appetite for higher-growth crypto narratives.
The first full trading week for $HYPE ETFs generated $72.4 million in inflows. Source: SoSoValue
Ultimately, the week demonstrated that the market is undergoing a major capital rotation. Institutional funds are no longer flowing uniformly into the largest crypto assets. Instead, investors are becoming increasingly selective, favoring products tied to ecosystem growth, infrastructure, and emerging market narratives over traditional large-cap crypto exposure.
As for Bitcoin and Ethereum, pressure remains significant. However, the broader crypto ETF market is far from inactive. Capital is still flowing — just into very different directions.
See also: "Grayscale Named 4 Cryptocurrency Networks That Could Benefit From the CLARITY Act"
