The outflow storm that started in U.S. spot Bitcoin ETFs has engulfed the broader crypto market. On Wednesday, Bitcoin funds bled another $396.60 million, extending the losing streak to 13 sessions and bringing cumulative redemptions since mid-May to $4.37 billion. Meanwhile, Ethereum, Solana, and XRP exchange-traded products have all joined the redemption wave, leaving Hyperliquid's HYPE ETF as the sole category still printing net inflows.
Bitcoin ETFs: IBIT Leads the Bleed
BlackRock's IBIT, the largest spot Bitcoin ETF by net assets, accounted for the bulk of Wednesday's outflow at $342.34 million. Fidelity's FBTC shed another $54.26 million. Both funds declined 2.76% and 2.65% respectively, as Bitcoin changed hands near $65,462, down from above $71,000 at the start of the week.
Total net assets across all U.S. spot Bitcoin ETFs have dropped from $104.29 billion on May 15 — the last session before the outflow streak began — to $82.83 billion on Wednesday. That is a roughly $21.46 billion reduction in three weeks, driven by both redemptions and Bitcoin's price slide. Bitcoin ETF AUM now represents 6.36% of Bitcoin's circulating market cap, down from above 7% at the May peak.
Ether, Solana, XRP All in Red
Ether ETFs saw combined outflows of $52.94 million on Wednesday, with BlackRock's ETHA responsible for $51.58 million. The fund dropped 5.56% as Ether traded below $1,900. Solana funds lost $12.74 million, led by Bitwise's BSOL at $11.56 million. XRP products bled $5.34 million, with Bitwise's flagship XRP ETF absorbing the outflow.
The altcoin ETF category had previously maintained modest but consistent retail inflows even as Bitcoin funds hemorrhaged. That pattern has now broken, with all major crypto ETFs — except HYPE — recording consecutive daily outflows.
HYPE Defies Gravity
Hyperliquid's spot ETF complex stands alone. 21Shares' THYP added another $2.99 million on Wednesday, pushing cumulative HYPE ETF net inflows to $139.51 million since the May 12 launch. Total net assets have reached $192.01 million. The HYPE token gained 3.45% to $73.39 on the day while the rest of crypto sold off.
Grayscale launched its own Hyperliquid product, HYPG, on Wednesday, pitching it as the lowest-fee U.S. spot HYPE ETF, undercutting Bitwise's BHYP and 21Shares' THYP on expense ratio. The timing coincides with a period in which every other major crypto ETF category is in net redemption.
Citigroup told clients on Tuesday that spot Bitcoin ETF flows explain roughly 45% of weekly BTC price moves and are the best gauge of investor adoption. The bank expects sentiment to remain subdued as long as ETF flows stay negative and the U.S. crypto market structure bill remains stalled.