Crypto ETFs Signal a Cautious Turn: Bitcoin Halts Outflows, HYPE ETFs Emerge as Market Darlings

After an extended period of significant capital withdrawal, the cryptocurrency market is finally witnessing a glimmer of hope. US Bitcoin Spot Exchange Traded Funds (ETFs) registered a modest net inflow of $3.05 million on Thursday, officially bringing an end to a record-breaking 13-day streak of outflows that saw over $4.4 billion exit the market since mid-May.

This prolonged divestment heavily impacted the overall asset under management (AUM) of Bitcoin ETFs, which plummeted from a pre-dip high of $104.29 billion to its current standing of $80.4 billion.

Bitcoin ETF Landscape: BlackRock Leads, Others Struggle

According to data from SoSoValue, among the various funds, BlackRock’s IBIT, the largest by scale, attracted a substantial $47.66 million on Thursday. In contrast, Fidelity’s FBTC, Bitwise’s BITB, and Ark Invest’s ARKB continued to experience capital outflows.

CheckonChain statistics reveal that US spot ETFs collectively hold approximately 1.277 million Bitcoins. This figure is only marginally higher than the 1.274 million low recorded on February 23rd, a period when Bitcoin was gradually recovering from its $60,000 valley.

Looking back at a historical peak in October, Bitcoin ETF holdings reached 1.376 million BTC. Since then, roughly 99,000 Bitcoins have been shed, representing a 7.2% decrease from that high point.

Ethereum ETFs Also See a Reversal

Concurrently, Ethereum Spot ETFs have also broken their own challenging streak, ending 17 consecutive days of capital flight. Thursday saw a net inflow of $19.3 million into these funds, with all of this capital flowing exclusively into BlackRock’s ETHA. Other Ethereum ETFs recorded zero net inflows for the day.

Currently, the total AUM for Ethereum ETFs stands at $9.78 billion, accounting for approximately 4.57% of Ethereum’s circulating market capitalization. Since their listing in 2024, Ethereum ETFs have accumulated a total net inflow of $11.21 billion.

HYPE ETFs: The Unstoppable “Dark Horse”

Amidst a generally subdued environment marked by significant capital losses across major cryptocurrency ETFs, HYPE Spot ETFs have emerged as the sole resilient performers, consistently defying the trend with robust inflows that continued strongly into Thursday.

These three distinct HYPE ETFs from various issuers collectively attracted another $12.15 million on Thursday. Bitwise’s BHYP led the charge with $7.45 million in inflows, while Grayscale’s newly launched, low-fee HYPG fund made an impressive debut, drawing in $4.7 million on its very first trading day.

In just four weeks since the launch of the first product on May 12th, the total net asset value of HYPE ETFs has rapidly climbed to $185 million. Most remarkably, HYPE ETFs have maintained an unbroken record of net inflows on “every single trading day” throughout this period.

Outlook: A Cautious Path to Recovery

While the bleeding from Bitcoin Spot ETFs has temporarily ceased, investors should look beyond a single day’s positive turn. The true indicator for market sentiment lies in whether capital flows can sustain improvement over the coming weeks. After enduring a period of unprecedented withdrawals, this modest return of funds marks only the initial step on a long road to a genuine market recovery and a shift in investor confidence.