XRP Spot ETFs Record $400K Outflows While Bitcoin ETFs Thrive

TLDR

• U.S. spot Bitcoin ETFs saw a total of $562 million in net inflows on February 2.
• The Fidelity Bitcoin ETF led the way, attracting $153 million in a single day.
• XRP Spot ETFs experienced a total net outflow of $400K on the same day.
• The 21Shares XRP ETF recorded the largest single outflow, losing $950K.
• Solana spot ETFs were the only altcoins to see positive net inflows, totaling $5.58 million.

February 2 marked a pivotal day for cryptocurrency ETFs. U.S. spot Bitcoin ETFs saw an impressive surge in net inflows, totaling $562 million. This increase highlights Bitcoin’s continued dominance in the crypto market, especially during uncertain market conditions. Meanwhile, Ethereum and XRP ETFs showed a contrasting trend, signaling cautious investor sentiment.

Bitcoin ETFs Lead with Strong Inflows

On February 2, U.S. spot Bitcoin ETFs saw substantial inflows, with the Fidelity Bitcoin ETF leading the charge. It alone attracted $153 million, contributing significantly to the day’s total of $562 million. This shows that Bitcoin remains a primary choice for investors, even in a weak market environment.

The growing demand for Bitcoin ETFs is a sign of investor confidence in the leading cryptocurrency. As Bitcoin’s price held steady at $78K, it provided a solid foundation for sustained demand. Investors view Bitcoin as a safe entry point into the crypto space, with large funds preferring it when confidence starts to grow.

XRP Spot ETFs Experience Small Outflows

While Bitcoin ETFs flourished, XRP Spot ETFs faced outflows, recording a total loss of $400K on February 2. This shift marks a weaker demand for XRP compared to Bitcoin and Solana. The 21Shares XRP ETF saw the biggest outflow, losing $950K, while the Bitwise XRP ETF saw a small net inflow of around $540K.

Despite these outflows, XRP Spot ETFs still hold over $1.1 billion in total assets. This indicates stable activity, with XRP representing around 1.1% of the total XRP market value. However, with a daily trading volume of $40 million, XRP has experienced less investor attention compared to Bitcoin on this particular day.

Solana ETFs Show Positive Movement Amidst Market Caution

Solana spot ETFs were the only altcoins to see positive net flows on February 2, with $5.58 million in inflows. This marks a growing interest in Solana as investors see its potential in decentralized finance (DeFi) and gaming. The positive narrative surrounding Solana has boosted its appeal, especially compared to the caution surrounding other altcoins like XRP.

Solana’s strong positioning in the market contrasts with the uncertainty around XRP, which continues to face regulatory challenges. While XRP ETFs face outflows, Solana is benefiting from more favorable investor sentiment. This highlights the shift in investor focus toward Solana as a promising alternative to Bitcoin and Ethereum.

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