ETF Investors Pull Back From Bitcoin and Ether as Altcoin Funds Buck Trend

Core Insights - US spot Bitcoin and Ether ETFs experienced significant outflows, totaling nearly $750 million during the first full trading week of 2026, primarily driven by Bitcoin funds [1][3][8] Group 1: Bitcoin and Ether ETF Performance - Spot Bitcoin ETFs recorded net outflows of $749.6 million from January 6 to January 9, with Bitcoin funds losing $681 million after four consecutive days of redemptions [3][4] - Despite a strong inflow of nearly $700 million on January 5, the overall trend was negative, culminating in a single-day outflow of $486.1 million on January 7, the largest drawdown of the week [3][4] - Spot Ether ETFs also faced outflows, ending the week with $68.6 million in net outflows, following earlier inflows that were reversed by heavy selling [6] Group 2: Market Dynamics and Trends - The 12 approved spot Bitcoin ETFs currently hold approximately $116.9 billion in net assets, representing about 6.5% of Bitcoin's total market capitalization, with cumulative net inflows exceeding $56 billion since their launch in January 2024 [5] - In contrast, XRP ETFs saw a positive trend, recording $38.1 million in net inflows and achieving their highest weekly trading volume of $219 million, indicating growing institutional interest [7][8] - Newer funds linked to altcoins like XRP and Solana attracted fresh capital, suggesting a shift in investor sentiment away from Bitcoin and Ether towards alternative cryptocurrencies [2][8]