Bitcoin ETF outflows deepen as ether and XRP funds quietly attract inflows

Bitcoin exchange-traded funds saw fresh outflows on Tuesday even as ether- and XRP-linked products drew net inflows, indicative of a growing split in how investors are positioning across major crypto assets during the latest bout of market volatility.

U.S.-listed spot bitcoin ETFs recorded roughly $272 million in net outflows on Feb. 3, according to data compiled by SoSoValue, extending a pattern of distribution that has emerged during bitcoin’s recent price swings.

The withdrawals came as bitcoin whipsawed sharply, sliding toward $73,000 before rebounding above $76,000, a move traders attributed to thin liquidity and fast-moving macro headlines.

In contrast, spot ether ETFs posted net inflows of about $14 million on the day, while XRP-focused products attracted nearly $20 million, suggesting some investors are rotating exposure rather than exiting crypto markets outright.

The divergence reflects shifting risk preferences rather than a wholesale loss of confidence in digital assets.

Bitcoin has increasingly traded as a macro-sensitive risk asset, reacting quickly to equity-market stress, tighter financial conditions and concerns around technology valuations.

Tuesday’s selling coincided with a sharp selloff in U.S. software stocks after Anthropic’s new AI automation tool reignited fears that artificial intelligence could disrupt traditional software business models, pressuring broader tech benchmarks.

The flows also echo a broader theme visible across markets: selective risk-taking rather than blanket risk-off behavior. While bitcoin ETFs have borne the brunt of near-term de-risking, capital is still moving within the crypto complex, favoring assets perceived as offering distinct use cases or relative value.