The bitcoin ETF bleed has permeated the entire crypto landscape. U.S. spot bitcoin funds experienced a significant outflow of $396.60 million on Wednesday, marking the continuation of a record streak with 13 consecutive sessions of withdrawals. This brings the total outflow to $4.37 billion since mid-May, as ether, solana, and XRP products also joined the trend of redemptions. Hyperliquid’s spot HYPE ETF stands out as the sole significant crypto fund continuing to attract net new investments. BlackRock’s IBIT, the largest bitcoin ETF by net assets, faced significant outflows on Wednesday, with $342.34 million in redemptions, as reported by data. Fidelity’s FBTC has experienced a further decline, with losses amounting to $54.26 million.
The two funds experienced declines of 2.76% and 2.65% respectively, coinciding with bitcoin trading at approximately $65,462, a decrease from over $71,000 at the beginning of the week. Total net assets across all U.S. spot bitcoin ETFs have decreased from $104.29 billion on May 15, the final session before the outflow streak commenced, to $82.83 billion on Wednesday. That marks a $21.46 billion decline in approximately three weeks, as redemptions and the downturn in bitcoin’s price have contributed to the impact. Bitcoin ETF assets under management now account for 6.36% of bitcoin’s circulating market cap, a decrease from over 7% during the peak in May. In other news, Ether ETFs experienced a significant decline, with a total loss of $52.94 million for the day. BlackRock’s ETHA dominated the scene with a substantial $51.58 million, yet the fund experienced a decline of 5.56% as ether fell below the $1,900 mark.
On Wednesday, Solana funds experienced a significant loss of $12.74 million, primarily driven by Bitwise’s BSOL, which saw outflows totalling $11.56 million. XRP funds experienced a decline of $5.34 million, with Bitwise’s flagship XRP ETF bearing the brunt of the loss. Both categories have now joined bitcoin and ether in experiencing net daily outflows for multiple consecutive sessions. This marks the end of a period during which altcoin ETFs had been attracting modest but consistent retail interest, while bitcoin funds were seeing losses. Hyperliquid’s spot ETF complex stood out as the sole exception. 21Shares’ THYP has attracted an additional $2.99 million, bringing the total net inflows for the HYPE ETF to $139.51 million since its launch on May 12, with total net assets now standing at $192.01 million. The token surged by 3.45% on the day, reaching $73.39, even as the broader crypto market experienced a sell-off.
Greyscale unveiled its latest product, HYPG, on Wednesday, branding it as the lowest-fee U.S. spot HYPE vehicle. This move positions HYPG to undercut Bitwise’s BHYP and 21Shares’ THYP in terms of expense ratio. The launch comes at a time when all other significant crypto ETF categories are experiencing net redemptions. Citi informed clients on Tuesday that spot bitcoin ETF flows account for approximately 45% of weekly BTC price fluctuations, labelling them as the most reliable indicator of investor adoption. The bank anticipates that sentiment will remain muted as long as ETF flows decline and the U.S. crypto market structure bill encounters delays.