Bitcoin, Ether ETFs Lose $520M as XRP Holds Up

Investors pulled roughly $520 million from U.S.-listed Bitcoin and Ether exchange-traded funds during a market selloff tied to expectations of further Federal Reserve interest-rate increases. The outflows coincided with declines in Bitcoin and Ether while XRP experienced smaller intraday losses and steadier trading.

Net redemptions were concentrated in ETFs that provide exposure to Bitcoin and Ether. Market participants rebalanced positions, and larger sell orders to meet those redemptions led to higher trading volumes and brief tightness in liquidity on some trading venues.

Traders cited concerns about higher borrowing costs and the potential for slower economic growth as reasons for reallocating assets. Those concerns followed continued signals that the Federal Reserve may maintain restrictive policy for longer, which market participants said increased the opportunity cost of holding non-yielding crypto assets.

The movement of funds out of ETFs fed selling pressure in spot and derivatives markets, contributing to downward price momentum for BTC and ETH during the session. Volatility measures for major cryptocurrencies rose as investors adjusted positions.

By contrast, XRP showed smaller swings during the same period and traded with relative stability compared with Bitcoin and Ether. Market data indicated that XRP’s intraday range was narrower than those of BTC and ETH in the session when the ETF outflows occurred.

Since the launch of publicly traded Bitcoin and Ether ETFs in recent months, institutional and retail flows have had a larger role in crypto price dynamics. Those products allow investors to gain exposure without directly holding coins and can coincide with rapid inflows or outflows around macroeconomic events such as central-bank meetings or policy guidance.

Fund managers and advisers adjusted allocations between risk-on and risk-off assets in response to the rate outlook and the ETF flows. Market participants continued to watch Federal Reserve statements and ETF activity for signals about further pressure on crypto asset prices.