Crypto Market Volatility: BTC and ETH ETFs Suffer Big Outflows

Investors pulled a significant $2.5 billion from Bitcoin and Ethereum ETFs through June 18, but two alternative categories - Hyperliquid and XRP - attracted less than $75 million combined.

The outflows from BTC and ETH ETFs far outweighed the inflows into HYPE and XRP funds, suggesting that investors are de-risking rather than rotating their portfolios. While HYPE's young fund base and XRP's modest weekly additions leave open whether either category can sustain interest, it's clear that the broader crypto market remains in a state of flux.

Bitcoin ETFs recorded negative flows on 11 out of 14 trading sessions in June, with a particularly significant outflow of $90.7 million on June 18. Ethereum ETFs also saw redemptions, shedding $12.8 million on the same day. The Federal Reserve's decision to maintain interest rates and its inflation concerns likely contributed to these outflows.

On the other hand, HYPE and XRP funds managed to attract net inflows of about $50 million and $24 million, respectively. While this may seem promising, it's essential to consider that these categories are still in their early stages, with cumulative inflows of around $189 million for HYPE and only a few months' worth of data available.