US Spot Crypto ETF Flows Show Diverging Institutional Behavior

Recent data has highlighted diverging behavior among institutional investors in the U.S. spot cryptocurrency market. After a strong two-day rally, Bitcoin ETFs turned negative, recording net outflows of $27.5 million on February 27.

The majority of this decline came from BlackRock's IBIT fund, which saw $32.7 million exit the fund. Despite smaller inflows into other funds, such as ARK's ARKB and Franklin's EZBC, these were not enough to offset the broader pullback.

Meanwhile, Ethereum ETFs experienced a sharper decline, with BlackRock's ETHA accounting for the full $43.0 million in net outflows. Other issuers posted flat activity, suggesting concentrated selling pressure rather than broad-based redemptions.

In contrast to Bitcoin and Ethereum, Solana ETFs recorded a small $1.3 million inflow on the day, indicating continued but limited institutional interest. Flows remain modest compared to Bitcoin and Ethereum products, reflecting the still-developing market structure for alternative Layer 1 ETF exposure.

XRP spot ETFs saw a notable $2.21 million inflow, with Franklin's XRPZ ETF accounting for the entire gain. The inflow marks one of the stronger single-day allocations for XRP products in recent sessions.