The week started with a small inflow, turned into a genuine stream, and ended with a massive capital outflow. By Friday's close, cryptocurrency exchange-traded fund (ETF) investors showed sharply divergent results: Ethereum maintained its growth momentum, Bitcoin's recovery stalled, and capital flows into altcoins were spread across the entire risk spectrum.
Bitcoin ETFs opened with two losing sessions. Investors withdrew $11.64 million on Monday and $49.75 million on Tuesday, extending the outflow wave that began last week.
Demand returned midweek. On Wednesday, the funds attracted $32.11 million, and on Thursday, another $233.13 million, with seven products recording inflows and none seeing outflows.
Friday wiped out this recovery. An outflow of $265 million resulted in Bitcoin ETFs posting a net weekly outflow of $61.53 million, ending a streak of three consecutive weeks of gains. Nevertheless, July still closed with a net inflow of $172.8 million, preserving a modest monthly recovery.
BlackRock's IBIT ETF led the list of weekly leaders with an inflow of $86.9 million. Morgan Stanley's MSBT ETF attracted $7.4 million, while Bitwise's BITB and Vaneck's HODL ETFs drew $2.9 million and $2.3 million respectively. Outflows were more significant in other funds. Fidelity's FBTC lost $85.2 million, Grayscale's GBTC lost $52.6 million, and ARK 21Shares' ARKB recorded an outflow of $30.6 million.
The Federal Reserve meeting divided the week. Voting 9-3, the central bank's policymakers left the federal funds rate target range at 3.50%-3.75%, with three officials advocating for a quarter-point hike. Fed Chair Kevin Warsh stated that market interest rates had risen between meetings as the central bank moved away from a heavy reliance on forecasts of future policy. This backdrop heightened the sensitivity of liquid positions dependent on macroeconomic factors, such as Bitcoin ETFs.
Ethereum Holds Ground as Altcoins Show Mixed Dynamics
Ethereum ETFs showed more stable results. On Monday, they attracted $9.23 million, on Tuesday $14.53 million, while Wednesday saw an outflow of $18.65 million. Inflows of $13.29 million on Thursday and about $9 million on Friday raised the total weekly figure to $27.42 million.
This extended Ethereum's positive trend to four weeks, although the scale of demand remained modest.
$XRP ETFs ended the week with a net inflow of $14.86 million. Franklin Templeton's XRPZ fund attracted capital over several sessions, with demand accelerating on Thursday and Friday.
Solana ETFs attracted $2.82 million. This category suffered an $18.07 million outflow on Tuesday but then recovered with a $19.06 million inflow on Wednesday and small gains throughout the rest of the week.
$HYPE funds continued to clearly lag behind. Redemptions reached $14.75 million, marking the third consecutive week of negative results. Outflows occurred over four sessions, including a withdrawal of $8.78 million on Wednesday.
The final data showed that investors remain willing to hold cryptocurrency positions through regulated funds. As the week progressed, their choices became more selective: they preferred the stability of Ethereum and specific opportunities related to $XRP and Solana, while reducing macro-sensitive Bitcoin positions and overextended positions in $HYPE funds.
end-content
