Bitcoin ETPs just took a major hit, with investors pulling $430 million last week—the biggest outflow of the year so far, according to CoinShares. This mass exodus also ended a 19-week streak of inflows, which had been fueled by optimism surrounding the U.S. election.
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James Butterfill, head of research at CoinShares, linked the sell-off to macroeconomic concerns, particularly Federal Reserve Chair Jerome Powell’s recent remarks urging patience on rate cuts. Now, the problem is that inflation is running hotter than expected, and because Bitcoin is highly sensitive to interest rate expectations, it has been put directly in the line of fire.
Solana and XRP ETPs See Inflows despite the Sell-Off
Not all crypto ETPs suffered. While Ethereum (ETH-USD) ETPs lost $7.2 million, altcoins like Solana (SOL-USD) and XRP (XRP-USD) saw investors jumping in. Solana led with $8.9 million in inflows, followed by XRP with $8.5 million and Sui with $6 million.
Growing speculation over potential Solana and XRP ETFs helped fuel this demand. According to Bloomberg analysts Eric Balchunas and James Seyffart, Solana has a 75% chance of SEC approval in 2025, while XRP sits at 65%.
This has naturally been reflected in Bitcoin’s price, which has not surpassed the $100K mark for a while, especially as outflows from Bitcoin ETPs have increased selling pressure. Simple economics, right? It may be straightforward, but price drops are still frustrating for BTC investors. Then again, they also present an opportunity for those who haven’t had a chance to buy Bitcoin. At the time of writing, Bitcoin is sitting at $96,258.52.
