Bitcoin ETFs bleed assets even as ether and XRP funds quietly gain

Capital flows are underscoring a growing divide in how investors are positioning across major crypto assets amid renewed market volatility.

Bitcoin exchange-traded funds recorded another day of outflows on Tuesday, even as products linked to ether and XRP attracted net inflows. U.S.-listed spot bitcoin ETFs saw approximately $272 million in net redemptions on Feb. 3, according to data from SoSoValue, extending a pattern of distribution that has tracked bitcoin’s recent price swings.

The outflows came alongside sharp intraday moves in bitcoin, which slid toward $73,000 before rebounding above $76,000. Traders attributed the whipsaw action to thin liquidity and rapidly evolving macro headlines.

By contrast, spot ether ETFs posted about $14 million in net inflows, while XRP-focused products drew nearly $20 million, suggesting investors are rotating exposure rather than exiting the crypto market altogether.

The divergence in flows points to shifting risk preferences rather than a broad loss of confidence in digital assets. Bitcoin has increasingly traded as a macro-sensitive asset, responding quickly to equity-market stress, tighter financial conditions, and concerns around technology-sector valuations.

Selling pressure coincided with a sharp pullback in U.S. software stocks after Anthropic unveiled a new AI automation tool, reviving concerns that artificial intelligence could disrupt traditional software business models and weighing on broader tech benchmarks.

Overall, the flow data reflect selective risk-taking rather than a blanket move to risk-off positioning. While bitcoin ETFs have absorbed much of the near-term de-risking, capital continues to move within the crypto complex, favoring assets perceived to offer differentiated exposure or relative value.