Ethereum exchange‑traded funds keep shrinking as altcoins pick up momentum
Bitcoin and Ethereum ETFs have seen large withdrawals, with about $3.8 billion leaving Bitcoin funds in five weeks and Ether ETFs posting similar outflows. Spot Bitcoin ETFs recorded a fifth consecutive week of net outflows, totaling roughly $316 million by February 20. Meanwhile, a few altcoin‑focused products, such as Solana and XRP ETFs, have attracted modest new capital, indicating a rotation within crypto assets rather than an exit from the sector. Bitcoin’s price hovers between $66,000 and $68,000, well below recent highs and key technical support levels. The decline fuels bearish expectations that BTC could slip toward $50,000 before any meaningful rebound. Large investors remain cautious, resulting in net distributions rather than the near‑steady inflows seen earlier this year. Ether ETFs suffered their fifth week of outflows, losing about $123 million as institutional interest wanes. In contrast, Solana ETFs recorded roughly $14 million of net inflows, and XRP funds saw smaller but positive additions. This internal reallocation suggests investors are seeking growth opportunities beyond the dominant BTC and ETH offerings. Analysts argue Bitcoin is losing its “digital gold” narrative amid macro uncertainty and competition from gold, stablecoins, and prediction markets. Declining price, regulatory shifts, and emerging technologies such as quantum computing challenge its traditional role. The crisis extends beyond short‑term volatility, reflecting broader questions about Bitcoin’s place in a rapidly evolving financial landscape.