Title: Crypto Bloodbath: XRP ETF Launch Can't Stop $1 Billion Exodus from Bitcoin and Ether Funds
The crypto markets are seeing a major shakeup. Recent data reveals a massive outflow from Bitcoin and Ethereum ETFs, dwarfing even the positive news surrounding the launch of a new XRP ETF. Let’s dive into the numbers and see what they’re really telling us.
The Great Crypto Exit
Thursday saw a staggering $870 million leave U.S.-listed spot Bitcoin ETFs, marking the second-largest single-day withdrawal since their inception, according to CoinDesk, citing SoSoValue data. Bitcoin ETFs hit by $870M in outflows, deepening market slide - report (BTC-USD:Cryptocurrency) Ether ETFs weren't spared either, experiencing $259.7 million in outflows. That’s a combined outflow of over $1 billion in a single day. (And that's net outflows, meaning even more money actually moved out, offset slightly by inflows.)
The context is crucial. Bitcoin dipped below $98,500, a six-month low and roughly 20% off its early October peak, according to CoinGecko. It then slid further, breaching $97,000 Friday morning. Ethereum and Solana also hit multi-month lows. The article attributes this to investors fleeing "risk-on assets" due to a "shaky U.S. economic and political environment." I'd say that's a fair assessment, but perhaps too broad. It's not just a general risk-off sentiment; it’s a specific reassessment of crypto's risk/reward profile in light of those macroeconomic concerns.
BlackRock’s iShares Bitcoin Trust (IBIT), despite managing over $80 billion, led the exodus with over a quarter of a billion in outflows. Fidelity Wise Origin Bitcoin Fund (FBTC) wasn't far behind, shedding over $119 million. The trend isn't new; IBIT has lost over $1 billion in the last 13 trading days and FBTC more than $681 million. That's a lot of faith evaporating.
XRP: A Drop in the Bucket?
Amidst this turmoil, Canary Capital’s spot XRP ETF (XRPC) launched with a surprising $58 million in first-day trading volume. Bloomberg Senior ETF Analyst Eric Balchunas initially projected around $17 million. It even surpassed the Bitwise Solana Staking ETF (BSOL), which opened with $57 million two weeks prior.
But here's where the numbers need perspective. While $58 million is a strong debut, it's a tiny fraction compared to the nearly $867 million lost by Bitcoin ETFs alone on the same day. It's like celebrating a single raindrop during a flash flood. The BSOL ETF, though initially strong, saw inflows of just $1.5 million on Thursday.
Bitfarms, a publicly traded Bitcoin miner, is even winding down its BTC operations to pivot to AI infrastructure after a $46 million loss in Q3 2025. This isn't just a market correction; it’s a potential strategic shift away from Bitcoin mining by some players. The announcement comes alongside the firm’s third-quarter earnings, in which it posted a net loss of $46 million, compared to a net loss of $24 million in Q3 2024 from its Bitcoin business.
And this is the part of the report that I find genuinely puzzling. Why the sudden pivot to AI? Was it purely the losses, or is Bitfarms anticipating a longer-term decline in Bitcoin profitability due to factors like increased mining difficulty or regulatory pressures? Details on their specific reasoning remain scarce, but the implications are significant.
One question I have is about the data-gathering methodology. How can we be certain the outflow numbers accurately reflect the sentiment of all crypto investors, or are they merely representative of those holding these specific ETFs?
The Canary's Last Gasp?
The XRP ETF launch is a positive blip, but it's overshadowed by the larger trend: a significant outflow from established Bitcoin and Ethereum funds. This suggests a broader reassessment of crypto risk, and a single successful ETF launch isn't going to reverse that tide.
