Bitcoin and Ethereum ETFs Lost $391 Million in a Day. Only XRP ETFs Took Money In.
Quick Read
Bitcoin and Ethereum ETFs shed a combined $391 million in a single day, Bitcoin’s second-largest October outflow.
XRP ETFs recorded just $740,414 in inflows after three straight inactive sessions, a figure amounting to less than 0.3% of Bitcoin’s outflow.
XRP fund holders sit at an average loss, with net assets of $1.51 billion against $1.80 billion in cumulative investment since launch.
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Investors withdrew a significant $391 million from Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) exchange-traded funds (ETFs), according to SoSoValue. Bitcoin ETFs lost $261.46 million, while Ethereum ETFs saw outflows of $129.51 million. In contrast, XRP (CRYPTO:XRP) funds experienced a positive shift, with XRP ETF inflows reaching $740,414, making it the only fund group among the four major cryptocurrencies to see any inflow.
This marks a reversal from the previous day, when Bitcoin ETFs recorded their second-largest inflow of the month on October 13, while XRP funds saw zero activity. This fueled speculation that funds were shifting from XRP to Bitcoin. What does this one-day opposite pattern indicate?
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Bitcoin, Ethereum, and Solana Funds Saw Outflows While XRP Funds Took In $740,414
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Bitcoin’s $261.46 million outflow was the second-highest of October, following the October 7 session. It completely negated the $175.62 million that had come into Bitcoin funds on October 13. Nevertheless, Bitcoin funds still hold a substantial $104.83 billion in net assets.
Ethereum funds also faced a setback, shedding $129.51 million the same day, adding to selling pressure on the two largest cryptocurrencies. Meanwhile, Solana (CRYPTO:SOL) funds fell slightly, shedding $1.29 million. Although small, this marks the ninth out of ten October sessions in which Solana funds have faced outflows, highlighting an ongoing trend.
Meanwhile, XRP funds recorded an inflow for the first time after three consecutive sessions with no activity. A fund records a flow when large brokers create new fund shares by depositing cash, or redeem shares for cash. For three sessions, these brokers were inactive, making the $740,414 inflow a notable shift, as it indicates a change from inactivity to some movement.
XRP’s $740,414 Inflow Is Minor Compared to Bitcoin’s $261 Million Outflow
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Despite the positive inflow, the amount that entered XRP funds is a mere fraction of what left Bitcoin funds that same day—less than 0.3%. Therefore, treating these two events as comparable would not be accurate.
Each fund’s figures must be viewed independently. While Bitcoin funds are experiencing outflows, XRP funds have recorded inflows, yet there’s no evidence suggesting that investors are necessarily switching from Bitcoin to XRP. One creation of new XRP fund shares does not guarantee that these buyers will return for subsequent sessions.
To date, XRP funds have attracted $1.80 billion since launch, reflecting net cash invested by investors. However, their current net assets stand at $1.51 billion, approximately 16.3% less than the total invested amount. This means XRP fund holders are currently at an average loss.
One Session Suggested Rotation Into Bitcoin, and the Next Suggested the Reverse
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On October 13, Bitcoin funds saw positive inflows while XRP funds remained stagnant, suggesting a rotation of investor funds. The following day, however, the trend flipped, with Bitcoin funds losing money while XRP funds posted the only inflow. This shift raises questions about investor sentiment, but both interpretations can’t be correct at the same time.
This contradiction emphasizes the unpredictability of daily flows. A single day’s data may reflect actions from a single large investor reallocating assets or trivial market noise.
A more reliable indicator would require observing the same trend across consecutive days. Solana’s nine negative sessions out of ten in October illustrate this point, while XRP’s single positive session does not provide similar confidence. The recent inflow could signal renewed interest or be an isolated event that may not repeat. A single inflow of $740,414 does not provide enough evidence to conclude that demand is steadily increasing.
Are XRP ETF Inflows a Sign of Renewed Demand?
Currently, XRP fund demand appears largely unchanged compared to the period before October 14, but the inactivity has changed; there’s no longer a flat line. A minor inflow following three sessions of inactivity does not constitute a trend. Bitcoin funds show the same volatility, swinging from a $175.62 million inflow to a $261.46 million outflow in back-to-back sessions.
For XRP funds to show sustained demand, they would need inflows over at least three consecutive sessions, matching the three-session inactivity period they recently ended. Furthermore, if net assets were to increase by about 19.5%, approaching the $1.80 billion cumulative inflow, holders could potentially break even. Until both conditions are met, the October 14 inflow should be viewed as a market pulse, with subsequent data from SoSoValue likely confirming or reversing this reading.
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