Bitcoin ETFs Saw Outflows on Monday as Altcoin ETFs Drew Inflows

Bitcoin ETFs saw outflows on Monday, while altcoin ETFs pulled in capital. Grayscale’s GBTC, in particular, makes the shift in the market clear.

By Zenz van der Wielen

2 days ago • 2 min read

Bitcoin ETFs Saw Outflows on Monday as Altcoin ETFs Drew Inflows

Key Takeaways

Bitcoin spot ETFs posted a net outflow of $64 million on Monday.

Spot ETFs for Ether, XRP, Solana, and Hyperliquid saw inflows of new capital.

The outflow from bitcoin ETFs was mainly driven by Grayscale’s GBTC, which lost $124 million.

Monday was a notable day for the crypto market, where bitcoin spot ETFs posted a net outflow of $64 million. At the same time, spot ETFs for altcoins like Ether, XRP, Solana, and Hyperliquid saw inflows of new capital. At first glance, this looks like investors shifting away from bitcoin and toward other cryptocurrencies.

Differences in Inflows Between Bitcoin and Altcoin ETFs

Ether funds received $22.5 million in new investments on Monday, Hyperliquid funds got $17.2 million, while XRP and Solana each saw about $2.8 million in inflows. These capital flows also reflect the price moves that day, with altcoins clearly outperforming bitcoin. XRP rose about 7%, Solana 6%, and Hyperliquid even 11%.

Still, it is important not to lose sight of the scale differences. Bitcoin ETFs still manage about $83 billion in assets, compared with around $10 billion for ether and about $1 billion each for the XRP, Solana, and Hyperliquid products.

Grayscale's GBTC's Impact on Bitcoin ETF Outflows

The outflow from bitcoin ETFs was not broad-based. BlackRock's IBIT, the largest bitcoin ETF, actually saw an inflow of $66 million. The net outflow was almost entirely caused by Grayscale's Bitcoin Trust (GBTC), a legacy trust with high fees that has been losing assets ever since spot bitcoin ETFs launched. GBTC lost $124 million in assets on Monday.

This situation highlights the impact of high fees, since GBTC charges an expense ratio of 1.5%, which is much higher than the roughly 0.25% charged by BlackRock's IBIT and Fidelity's FBTC. That gap is pushing investors toward cheaper options in the bitcoin ETF market. It fits into the broader debate around ETF flows, where analysts also point to macro pressure and arbitrage positions as reasons for bitcoin ETF outflows.

Possible Implications for the Crypto Market

The big question now is whether the inflows into altcoin ETFs are a lasting trend or whether Monday was just a one-off. If GBTC's negative impact on bitcoin ETF numbers keeps fading and altcoin ETFs keep growing, it could point to a broader rotation within the crypto market. For now, it remains to be seen whether these capital flows continue.

Relevance for European Investors

For European crypto investors, this development could signal a shift in sentiment across ETF products, with fees and performance playing a bigger role. The growing interest in altcoin ETFs may also point to broader acceptance and diversification within the crypto market, which could matter for portfolio management and risk spreading in Europe.

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