Key Takeaways
- Bitcoin ETF and Ethereum ETFs register record outflows amid a broader crypto market selloff.
- Macro fears and concerns over an AI bubble caused the stock market to have its worst day in a month and spilled over into other risk assets like crypto.
- XRP ETF debut bucks the trend with a record $245 million inflows on day one.
Crypto investors awoke to a Friday morning bloodbath, with the crypto market crashing across the board, and Bitcoin ETFs and Ethereum ETFs registering one of their worst days on record.
According to Coinglass, spot Bitcoin ETFs hemorrhaged $866.7 million, marking the third-biggest net outflows since inception. Ethereum ETFs saw $410 million flee in a single session, a rout not even October’s volatility could eclipse.
Heavy-hitters like BlackRock and Fidelity helmed the retreat, as liquidity flashed out of the crypto market. Even the most battle-hardened traders found themselves glued to the tape, bracing for ripple effects across every corner of the crypto ecosystem.
Bitcoin ETFs and Ethereum ETFs Outflows
Bitcoin ETFs’ $866.7 million ETF exodus was the third-biggest outflow since launch, amplifying just how closely ETF sentiment and price have become intertwined. Ethereum’s $410 million outflow smashed even the bloodiest October 13 session. The stat sheet tells a simple story: institutions are reassessing, reallocating, and (for the moment) running for the exit.
The moves are not just tactical; they set the tone for an ecosystem that looks to the Bitcoin ETF and Ethereum ETF data for its cues. Each fresh outflow is less a detail, more a barometer of institutional risk aversion. For every buy-the-dip optimist, this week’s data delivers a bracing reality check.
Why Is the Crypto Market Down?
It’s tempting to reach for metaphors (contagion, stampede, a house of cards), but on this occasion, the crypto market is simply reading the room. Markets are recoiling on all sides.
US equities registered their worst day in a month as the selloff in tech stocks amplified. Many investors are worried about overvaluations, particularly among AI companies, and the economic situation remains uncertain.
With fresh doubts swirling about the next rate cut, sidelined rather than served, risk assets have nowhere to hide. The crypto market, which likes to think of itself as uncorrelated, finds itself front and center in a risk-off drama, as Bitcoin, the flagship cryptocurrency, tumbles below the psychological foothold of $100,000. BTC was trading at around $97,000 at the time of writing.
The Crypto Fear and Greed Index plunged firmly into “extreme fear,” and BTC long positions were liquidated en masse.
XRP ETF’s Bright Debut
Yet amid the carnage, the XRP crowd has something to cheer. Canary Capital’s XRPC fund roared onto Nasdaq with $245 million in inflows on day one. That number doesn’t just make it the top ETF debut of 2025; it cements XRP’s narrative as a comeback kid.
First-day trading clocked $58 million, steamrolling every crypto ETF launch this year, Solana’s included. Amid the broader selloff of Bitcoin ETFs and Ethereum ETFs, XRP’s inflows are a cause for optimism in the crypto market.
Indeed, not every investor is screaming for the exit. On-chain analyst Chekmate believes the crypto market is far from topping out. He posted:
“This is exactly why I stacked sats today. If you’re buying in lock-step with the inexperienced newbie fast money, you’re buying high. I prefer my sats on red bloody days, when sentiment is in the absolute gutter, and we’re 20% off the ATH.”
Treasury Guidance for Staking ETFs
For crypto investors feeling extreme fear right now, the best advice would be to zoom out. The crypto market fundamentals have never been better. And with the new Treasury guidance issued, opening the door to staking ETFs, the guardrails are now clear. Spot crypto funds can stake via registered custodians, and the rewards flow to investors as ordinary income.
For both institutional allocators and the adventurous retail set, this is one less excuse to stay sidelined. Staking within Ethereum ETFs is now possible in a transparent, compliant structure. And it could add a layer of yield and legitimacy that changes the calculus for many on the fence.
Macro Forces and the Road Ahead
Call it a test by fire or a macro stress test, but crypto’s November unraveling is once again an object lesson in how risk and reward travel on the same rail. Institutional flows in Bitcoin ETFs and Ethereum ETFs have cut both ways.
Yet, XRP’s ETF launch offered a moment of levity. And Treasury’s staking edict hints at a regulatory reset. What remains is a crypto market truer to its history than its hype. Hardwired to macro winds, sorted by resilience, and unmistakably up for grabs.