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XRP’s 13-week ETF inflow streak ends as Bitcoin and Ethereum withdrawals continue

Ethereum accounted for 56% of weekly net withdrawals across the four tracked US ETF categories. XRP funds recorded $1.84 million in net redemptions.

Quick Take

  1. XRP ETFs recorded $1.84 million in net outflows in the week ended Oct. 16, ending 13 consecutive positive weeks.
  2. Bitcoin, Ethereum, Solana and XRP ETFs recorded combined net withdrawals of $575.91 million for the week and $1.81 billion over two weeks.
  3. Ecoinometrics linked slower Bitcoin ETF buying to higher Treasury yields, which increase competition for investor capital.

US-listed XRP exchange-traded funds ended a 13-week inflow streak as investors withdrew nearly $576 million from four major cryptocurrency ETF categories.

Data from SoSoValue showed that XRP funds recorded $1.84 million in net outflows during the week ended Oct. 16, reversing the $11.31 million inflows registered a week earlier. The withdrawal ended the longest active weekly inflow streak among the four categories, removing the last source of positive flows as Bitcoin, Ethereum and Solana funds continued losing capital.

Bitcoin ETFs recorded $228.58 million in net withdrawals, while Ethereum products lost $319.97 million and Solana funds shed $25.52 million.

Together with XRP, the four categories saw $575.91 million in net outflows, bringing combined two-week withdrawals to about $1.81 billion.

Weekly net withdrawals across the four categories slowed from approximately $1.24 billion the previous week.

XRP funds had recorded positive flows in every week from the week ended July 17 through Oct. 9. Cumulative net inflows remained around $1.80 billion.

XRP ETF assets also fell to $1.47 billion from $1.57 billion a week earlier, reflecting both investor withdrawals and changes in the underlying token's market value.

Ethereum leads weekly withdrawals as Solana outflows continue

Meanwhile, Ethereum has emerged as the largest source of weekly ETF withdrawals, accounting for approximately 56% of the four categories' combined net outflows.

Its $319.97 million loss was smaller than the previous week's $542.07 million withdrawal but extended its losing streak to three consecutive weeks. Ethereum ETFs have now shed approximately $1 billion during that period, reducing cumulative net inflows to $12.94 billion.

Net assets in Ethereum ETFs fell to $14.95 billion from $15.71 billion a week earlier, reflecting both net withdrawals and changes in Ether's price.

Solana funds experienced a similar deterioration, recording their second consecutive negative week after a lengthy period of consistent accumulation ended earlier this month.

Their $25.52 million weekly withdrawal followed $24.81 million in redemptions the previous week, bringing their two-week losses to $50.33 million. Cumulative inflows declined to approximately $1.56 billion, while net assets fell to $1.62 billion.

Bitcoin ETF demand weakens as higher Treasury yields challenge recovery

Bitcoin ETF withdrawals moderated substantially, falling about 66% from the previous week's $681.10 million outflow.

However, the latest figures marked a second consecutive negative week, bringing combined Bitcoin ETF withdrawals to approximately $910 million during the period. Cumulative net inflows have consequently declined to $56.88 billion, while total net assets fell to $104.29 billion.

The slowdown comes as Bitcoin struggles to sustain its recovery above $80,000 amid mounting concerns about US monetary policy and the broader outlook for risk assets.

CryptoQuant analyst Axel Adler said Bitcoin ETFs have recorded two consecutive weeks of net withdrawals, though their trailing 30-trading-day flows remained positive at about 15,400 BTC as of Oct. 16.

He noted that weekly outflows had eased to around 2,800 BTC, suggesting selling pressure was moderating even as institutional accumulation continued to slow.

Bitcoin ETF Outflows
Bitcoin ETF Outflows (Source: CryptoQuant)

Bitcoin-focused research platform Ecoinometrics reached a similar conclusion in an Oct. 16 assessment, highlighting the deterioration in ETF buying since Bitcoin recovered above $80,000 in late September.

The firm found that daily inflows and outflows had largely offset each other over nearly three weeks, leaving cumulative net demand barely positive despite the cryptocurrency's recovery.

This weakening demand presents a challenge for Bitcoin's next advance.

Ecoinometrics linked the slowdown partly to rising US Treasury yields and the Federal Reserve's increasingly restrictive monetary policy.

With benchmark 10-year Treasury yields recently reaching levels last seen in 2002, investors face stronger competition for capital between interest-bearing securities and assets such as Bitcoin and gold, which generate no inherent yield.

The research firm observed that both assets had benefited from renewed ETF investment since the summer, although Bitcoin's cumulative buying momentum had flattened while demand for gold was also beginning to moderate.

The outlook has grown more challenging after the Federal Reserve's September interest-rate hike. Ecoinometrics' Fed Communications Index indicates policymakers have become progressively more hawkish since March, with the latest meeting minutes reinforcing expectations of further tightening.

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Related Asset XRP #5 XRP $1.30 24-hour change: up 0.31% Loading price history… 24H Up 0.31% 7D Down 7.20% 30D Down 8.75% Related Asset Ethereum ETH $2,414.61 24-hour change: down 0.10% Related Asset Solana SOL $104.42 24-hour change: up 0.43% Related Asset Bitcoin BTC $82,156.23 24-hour change: up 0.18% Related Company CryptoQuant Provider of on-chain and market data analytics