Bitcoin ETFs are bleeding capital while newer altcoin funds quietly gain ground. Recent data shows a clear split forming across the crypto ETF landscape in early 2026. Investors are growing more selective, and the numbers tell a compelling story.
Bitcoin ETFs and the Growing Outflow Problem
The crypto market has been watching a curious pattern unfold over recent weeks. Bitcoin, long considered the undisputed king of digital assets, is now at the center of a significant outflow story. According to data from SoSoValue, spot Bitcoin ETFs recorded $133.27 million in net outflows on February 18, 2026 alone. Furthermore, as reported by The Block, the five-week streak of outflows from spot Bitcoin ETFs is the longest since the tariff-driven shock of early 2025.
BlackRock’s iShares Bitcoin Trust (IBIT) led the losses, shedding $84.19 million in a single session. Additionally, Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed closely, posting $49.07 million in outflows. Although IBIT still holds approximately $50.2 billion in assets, the consistent withdrawals are raising eyebrows across the investment community. Notably, despite these outflows, cumulative Bitcoin ETF inflows since their January 2024 launch still stand at roughly $54 billion, according to SoSoValue data. So, the structural foundation remains large, even as short-term sentiment cools.
Because Bitcoin is trading around $68,600 at the time of writing, down more than 20% year-to-date, institutional appetite appears to be softening. Moreover, on-chain analytics firm Glassnode notes that Bitcoin has fallen below its “True Market Mean” of approximately $79,000. That level, according to Glassnode, represents a dividing line between market expansion and compression phases. As a result, many institutional investors are reassessing their short-term positioning in Bitcoin-focused products.
Source: https://www.theblock.co/post/390706/spot-bitcoin-etfs-notch-five-straight-weeks-of-outflows-for-first-time-since-march-2025
Ethereum Follows a Similar Path
Ethereum ETFs are not faring any better. In fact, spot Ethereum ETFs recorded their fifth consecutive week of net outflows as well, shedding approximately $123 million over that same week. On February 18, U.S. spot Ethereum ETFs posted $41.8 million in daily net outflows. Specifically, BlackRock’s Ethereum ETF (ETHA) was the biggest loser, dropping nearly $30 million in a single day.
Total net assets across all Ethereum funds currently sit at $11.1 billion, which equals roughly 4.8% of Ether’s total market cap. Nevertheless, Ethereum has struggled to build price momentum, trading below the $2,000 mark. Consequently, investor confidence in ETH-focused products has weakened alongside the broader macro uncertainty. Analysts at BRN described the current environment as one of “fatigue, not panic,” which is a useful lens for understanding these flows.
Even so, the Ethereum ETF category is not disappearing. Since their launch in July 2024, spot Ethereum ETFs generated $12.6 billion in cumulative net inflows as of mid-December 2025, according to CoinGlass. Therefore, the longer-term picture remains more encouraging, even if the near-term flows are under pressure.
Source: https://bitcoinethereumnews.com/bitcoin/u-s-spot-bitcoin-and-ethereum-etfs-post-outflows-solana-etfs-see-inflows/
XRP ETFs: A Mixed but Interesting Picture
XRP ETFs have shown a notably different character throughout this cycle. On one hand, February 18 saw XRP ETFs post $2.21 million in daily outflows, led entirely by the Grayscale XRP Trust ETF (GXRP). On the other hand, zooming out to a weekly perspective reveals a dramatically different story. During the final weeks of 2025, XRP ETFs recorded $79 million in net inflows, marking their strongest weekly performance since launch.
Total net assets across XRP funds currently sit just over $1 billion, representing about 1.2% of XRP’s total market cap. Meanwhile, cumulative net inflows for XRP ETFs have reached approximately $883 million since their November 2025 debut, according to CoinGlass. Interestingly, XRP ETFs have recorded zero outflow days on multiple occasions, which reflects a resilient and consistent base of investor interest. Additionally, unlike Bitcoin, whose ETF flows closely track its price performance, XRP ETF investors appear more focused on long-term positioning than short-term price swings.
This contrast is worth paying close attention to. Because Bitcoin remains the benchmark for crypto market sentiment, when Bitcoin flows turn negative, the entire market often feels the pressure. Evidently, XRP investors are thinking differently, and the numbers support that conclusion.
Source: https://www.ccn.com/news/crypto/bitcoin-ethereum-outflows-solana-xrp-record-largest-inflow/
Solana ETFs: The Quiet Winner
While Bitcoin and Ethereum funds continued to bleed, Solana ETFs emerged as the clear bright spot in recent sessions. On February 18, U.S. spot Solana ETFs recorded $2.4 million in net inflows, pushing cumulative inflows to nearly $880 million since launch. Bitwise’s BSOL led the charge, adding $1.51 million in fresh capital, followed by Fidelity and Invesco with smaller contributions.
Furthermore, over the week ending February 20, Solana ETFs gathered approximately $14.3 million in net inflows, extending a pattern that has seen the altcoin-focused products attract consistent capital even as Bitcoin and Ether funds struggled. Bitwise’s BSOL continues to lead the SOL ETF category by a wide margin in terms of assets under management.
Clearly, the appeal of Solana ETFs is growing. One reason for this is the staking yield component built into several Solana ETF products, following new IRS and Treasury guidance that allowed staking rewards to be passed on to ETF shareholders. That feature makes Solana ETFs uniquely attractive compared to their Bitcoin and Ethereum counterparts. Additionally, Solana’s technology narrative continues to resonate with a newer class of crypto investors who prioritize blockchain utility over store-of-value arguments.
Notably, the Bitwise Senior Investment Strategist Juan Leon highlighted that XRP and Solana ETFs have been “huge successes and a validation of investor appetite beyond Bitcoin and Ethereum,” even if they haven’t matched Bitcoin’s price impact. Consequently, fund managers and investors alike are watching these products closely for signs of sustained momentum.
Source: https://coincentral.com/solana-etfs-post-inflows-as-bitcoin-ether-xrp-suffer-outflows/
Capital Rotation, Not Capital Flight
An important point to understand here is that money is not simply leaving the crypto ETF space. Instead, capital is rotating within it. According to CoinDesk, U.S.-listed spot Bitcoin ETFs recorded roughly $272 million in net outflows on February 3, even as spot Ether ETFs drew $14 million in inflows and XRP-linked products attracted nearly $20 million on the same day. Undeniably, this shows that investors are not abandoning digital assets altogether.
Moreover, analysts note that the divergence in flows reflects increasingly selective institutional positioning. Rather than buying the entire crypto market through Bitcoin exposure, a growing number of investors are seeking out specific assets they believe offer distinct value or use cases. For example, XRP’s utility in cross-border payments and Solana’s high-throughput blockchain architecture are drawing targeted attention from portfolios that once relied exclusively on Bitcoin exposure.
Furthermore, year-to-date inflows across all crypto ETFs still stand at approximately $46.3 billion as of late 2025, slightly below 2024’s $48.7 billion full-year total. Total assets under management across crypto ETFs are still up 10% year-to-date. So, even as Bitcoin-specific products face outflows, the broader ecosystem continues to grow.
Source: https://www.coindesk.com/markets/2026/02/04/bitcoin-etf-outflows-deepen-as-ether-and-xrp-funds-quietly-attract-inflows
The Macro Backdrop Pressuring Bitcoin
It would be incomplete to discuss Bitcoin ETF outflows without addressing the macroeconomic environment driving them. Bitcoin remains highly sensitive to changes in U.S. monetary policy, inflation data, and broader risk appetite in financial markets. Because interest rates have stayed elevated longer than many investors anticipated, risk-sensitive assets like Bitcoin have struggled to sustain upward momentum.
Additionally, exchange data shows that large holders, commonly referred to as “whales,” now dominate the selling side of the market. At the same time, stablecoin inflows into crypto exchanges have shrunk, suggesting weaker net buying power. Altcoin deposits and volatility are both rising, further adding to the cautious environment surrounding Bitcoin specifically.
However, analysts at 21Shares noted that Bitcoin bulls will be watching the $65,000 level closely as a key support floor. According to 21Shares head of macro Stephen Coltman, a sustained move above $70,000 would indicate that the recent selling pressure may have exhausted itself. Therefore, much depends on upcoming macroeconomic data releases and whether institutional appetite for Bitcoin ETFs begins to recover.
Source: https://www.theblock.co/post/390706/spot-bitcoin-etfs-notch-five-straight-weeks-of-outflows-for-first-time-since-march-2025
A Year of Contrasts for Crypto ETFs
Looking back over a longer horizon, 2025 was a remarkable year for the crypto ETF industry, even if performance disappointed. Bitcoin ETFs gathered $57.7 billion in cumulative net inflows since their January 2024 debut, as of mid-December 2025, per Farside Investors. That figure represents a 59% increase compared to the $36.2 billion recorded at the start of 2025. However, Bitcoin’s price did not keep pace with those flows, frustrating many investors who bought into Bitcoin ETFs expecting continued appreciation.
Moreover, the dominance of BlackRock’s IBIT is striking. In 2025, IBIT alone captured $25.1 billion in inflows, far surpassing every other crypto ETF product combined. Additionally, IBIT came within striking distance of $100 billion in assets under management in October, peaking at $99.4 billion before price declines and outflows pushed the figure lower. That concentration of assets within a single Bitcoin product tells its own story about how institutional investors view the space.
Because 2025 also saw the SEC introduce generic listing standards for crypto ETFs, the door opened wide for a new wave of products. Since then, ETFs tracking Solana, XRP, and even Dogecoin have launched successfully. Furthermore, staking-enabled crypto ETFs introduced a yield component that had never existed before in this product category. As a result, the overall crypto ETF landscape is far more diverse today than it was when Bitcoin ETFs first launched.
Source: https://www.etf.com/sections/features/34-billion-entered-crypto-etfs-2025-investors-still-lost
Investor Takeaways From the Current Trend
There are several important observations worth drawing from this evolving picture. First, Bitcoin’s short-term outflows do not necessarily signal the end of institutional interest in the asset. Rather, they reflect a period of repositioning following a significant price decline. Second, the rise of Solana and XRP ETF inflows suggests that investors are broadening their crypto exposure beyond the traditional Bitcoin and Ethereum duopoly.
Third, the staking yield feature available in several Solana ETFs could become a significant differentiator going forward, particularly as investors look for yield in an environment where traditional fixed-income products remain competitive. Fourth, XRP ETFs have demonstrated remarkable consistency, with virtually no sustained outflow patterns since their November 2025 launch. That resilience is notable, especially given the broader risk-off sentiment weighing on Bitcoin.
Finally, capital rotation within crypto ETFs rather than capital flight out of them is arguably the most important takeaway from recent flow data. Because money continues to stay within the digital asset ETF ecosystem, the infrastructure and investor base that supports these products remains intact. Accordingly, the next price catalyst for Bitcoin could trigger a rapid reversal of the current outflow trend.
Conclusion: Selective Positioning Defines the New Era
The current phase of the crypto ETF market is defining something new. Bitcoin ETFs are no longer the automatic destination for institutional capital entering the digital asset space. Instead, investors are thinking more carefully about where to allocate, and the data clearly shows that Solana and XRP are capturing meaningful attention.
Nevertheless, Bitcoin remains the largest, most liquid, and most institutionally trusted digital asset by a significant margin. Because Bitcoin’s total cumulative ETF inflows since launch exceed $54 billion, dismissing its long-term relevance would be premature. The current outflows are better understood as a pause than a pivot. Additionally, once macroeconomic headwinds ease and price action stabilizes, Bitcoin ETFs could see a strong reversal in net flows.
For now, the clear message from the market is this: selectivity is the defining feature of crypto ETF investing in 2026. Solana and XRP ETFs are thriving precisely because they offer something beyond what Bitcoin provides, whether that is staking yield, payment utility, or simply novelty to a market searching for fresh narratives. Ultimately, Bitcoin will likely reclaim its position as the dominant driver of inflows. The question is simply one of timing, and the data will tell that story as it unfolds.
Sources and References:
- The Block: https://www.theblock.co/post/390706/spot-bitcoin-etfs-notch-five-straight-weeks-of-outflows-for-first-time-since-march-2025
- CoinDesk (February 2026 Outflows): https://www.coindesk.com/markets/2026/02/19/bitcoin-ether-xrp-etfs-bleed-while-solana-bucks-outflow-trend
- CoinDesk (February 4 Rotation): https://www.coindesk.com/markets/2026/02/04/bitcoin-etf-outflows-deepen-as-ether-and-xrp-funds-quietly-attract-inflows
- CoinCentral: https://coincentral.com/solana-etfs-post-inflows-as-bitcoin-ether-xrp-suffer-outflows/
- CCN: https://www.ccn.com/news/crypto/bitcoin-ethereum-outflows-solana-xrp-record-largest-inflow/
- BitcoinEthereumNews: https://bitcoinethereumnews.com/bitcoin/u-s-spot-bitcoin-and-ethereum-etfs-post-outflows-solana-etfs-see-inflows/
- ETF.com: https://www.etf.com/sections/features/34-billion-entered-crypto-etfs-2025-investors-still-lost
- Yahoo Finance / Decrypt: https://finance.yahoo.com/news/crypto-etfs-2025-bitcoin-ethereum-140103429.html
