Bitcoin Spot ETFs See ~ $1B Outflow; XRP ETF Posts Small Inflows as BTC Drops Toward $60K
Spot Bitcoin ETFs recorded roughly $434 million in outflows on Thursday and about $1 billion over the past two days (including $545 million the previous day), driving weekly net outflows to about $690 million despite earlier inflows. The withdrawals coincided with Bitcoin’s sharp decline toward $60,000 — the lowest level since October 2024 — and renewed criticism that spot ETFs create “paper Bitcoin,” potentially diluting on-chain scarcity. Analysts including Bob Kendall and Josef Tětek warned that ETFs can enable the same BTC exposure to be represented across multiple products (ETF units, futures, perpetual swaps, options, loans), likening the structure to a fractional-reserve–style system. Total assets in spot Bitcoin ETFs remain near $81 billion with cumulative net inflows of about $54.3 billion. Ether ETFs saw roughly $80.8 million in outflows over the period. Meanwhile, XRP and Solana ETFs posted modest inflows of about $4.8 million and $2.8 million respectively. XRP traded near $1.32, down around 6–7% in 24 hours, with RSI near oversold (~26); analysts note support around $1.12–1.29 and resistance at $1.40–1.68, highlighting rebound potential but warning that the downtrend could continue. For traders: monitor ETF flows, Bitcoin spot/futures basis, and XRP futures liquidity; apply strict risk management and position sizing given elevated volatility. This summary is informational and not investment advice.
Bearish
Net outflows from spot Bitcoin ETFs totaling roughly $1 billion over two days and about $690 million for the week coincide with a sharp BTC decline toward $60K. Large ETF redemptions increase selling pressure on BTC-linked products and can widen the spot-futures basis, amplifying short-term downside risk. Criticism that ETFs create “paper Bitcoin” may dampen demand from institutional buyers and increase risk aversion. Although total ETF assets and cumulative inflows remain substantial (near $81B and $54.3B), the immediate effect is negative for BTC price action. For XRP, small ETF inflows are supportive but limited; technicals show oversold RSI and potential for a bounce, yet the prevailing market weakness likely constrains a sustainable rally. In short-term trading, expect elevated volatility, greater correlation between ETF flows and price moves, and potential for further downward pressure until flows stabilize. Longer-term impact is mixed: persistent large ETF inflows historically supported BTC price discovery, but repeated outflow episodes and structural concerns about “paper” exposure could weigh on sentiment and capital allocation.