Bitcoin exchange-traded funds (ETFs) saw a strong new entrant—Morgan Stanley's MSBT fund—which garnered $30.6 million in inflows on its debut day, thanks to its industry-low 0.14% expense ratio. However, the broader market continued to bleed, with net outflows reaching $93.9 million for the week, highlighting uneven demand.
MSBT and IBIT Shine, but Outflows from Fidelity and Grayscale Dominate
On the inflow side, Blackrock's IBIT added $40.38 million, providing stability alongside MSBT. Yet outflows were far heavier: Fidelity's FBTC saw a massive $79.12 million exodus, Ark and 21Shares' ARKB lost $74.7 million, and Grayscale's GBTC shed another $11.1 million. Total daily trading volume reached $3.04 billion, but net assets fell to $91.9 billion.
Analysts note that demand exists but is highly fragmented. While MSBT's strong start and IBIT's steady inflows signal ongoing interest from some investors, the sheer scale of redemptions from established products overwhelmed new capital.
Ether ETFs Also Bleed, Solana Slight Outflows, XRP Flat
Ether ETFs mirrored Bitcoin's pain, recording a net outflow of $18.6 million. Blackrock's ETHB drew $44.23 million and 21Shares' TETH added $1.98 million, but Fidelity's FETH lost $32.43 million, Blackrock's ETHA shed $20.64 million, and Grayscale products saw small redemptions. Ether ETF daily turnover stood at $958.09 million with net assets of $12.56 billion.
Other crypto ETFs saw muted activity. Solana ETFs trickled out $1.9 million, led by Grayscale's GSOL, Bitwise BSOL, and VanEck VSOL. XRP ETFs recorded no trades, holding net assets at $950.14 million. The overall market reflects selective preference for low-cost, high-liquidity products.
Outlook: Lack of Directional Consistency May Persist
Morgan Stanley's entry was expected to boost confidence, but its $30.6 million inflow pales against $94 million in outflows. While institutional adoption remains a long-term positive, short-term volatility is likely as investors weigh macroeconomic uncertainties and profit-taking. Watch for whether net inflows can resume in coming weeks.