The bitcoin ETF hemorrhage has spread to cryptocurrencies.
US bitcoin spot funds lost another $396.6 billion on Wednesday, extending a record streak of outflows to 13 consecutive sessions and a run of $4.37 billion since mid-May, while ether, solana and XRP products joined the bailout wave.
Hyperliquid’s HYPE spot ETF was the only major crypto fund still generating net new money.
BlackRock’s IBIT, the largest bitcoin ETF by net assets, absorbed the bulk of Wednesday’s outflows with $342.34 million in redemptions, according to data from SoSoValue. Fidelity’s FBTC lost another $54.26 million.
The two funds fell 2.76% and 2.65% respectively, as bitcoin traded around $65,462, down from more than $71,000 at the start of the week.
The total net assets of all US spot bitcoin ETFs have fallen from $104.29 billion on May 15, the last session before the outflow streak began, to $82.83 billion on Wednesday.
That’s a drop of $21.46 billion in about three weeks, and the refunds and the decline in the price of bitcoin are combining to cause the damage. Bitcoin ETF AUM now represents 6.36% of bitcoin’s circulating market capitalization, down from 7% at the May peak.
Elsewhere, Ether ETFs lost a combined $52.94 million that day. BlackRock’s ETHA accounted for almost all of this at $51.58 million, and the fund fell 5.56% when ether traded below $1,900.
Solana funds lost $12.74 million on Wednesday, led by Bitwise’s BSOL with $11.56 million in outflows. XRP funds lost $5.34 million, with Bitwise’s flagship XRP ETF taking the hit.
Both categories have now joined bitcoin and ether in daily net outflow for multiple consecutive sessions, ending a period in which altcoin ETFs had been attracting modest but steady retail interest while bitcoin funds bled.
The Hyperliquid spot ETF complex was the only outlier. 21Shares’ THYP raised another $2.99 million, bringing the HYPE ETF’s cumulative net inflows to $139.51 million since the May 12 launch and total net assets to $192.01 million. The token gained 3.45% on the day to $73.39 as the rest of the cryptocurrencies sold off.
Grayscale launched its own Hyperliquid product, HYPG, on Wednesday, pitching it as the lowest-fee spot HYPE vehicle in the US and undercutting Bitwise’s BHYP and 21Shares’ THYP spend index. The launch comes at a time when all other major crypto ETF categories are in net redemption.
Citi told clients on Tuesday that bitcoin ETF spot flows explain about 45% of BTC’s weekly price movements, calling them the best indicator of investor adoption. The bank expects sentiment to remain subdued as ETF flows turn negative and the US crypto market structure bill stagnates.
