Bitcoin ETFs Extend Outflows Despite Morgan Stanley's $31 Million Debut

Bitcoin exchange-traded funds (ETFs) extended their outflow streak despite a strong debut from Morgan Stanley’s new fund. Ether also posted losses, Solana declined, and XRP saw no trading movement.

Bitcoin ETFs: Outflows Continue as MSBT Debuts

Bitcoin ETFs shed $93.9 million, keeping the sector in net outflows even as Morgan Stanley’s much-anticipated MSBT made a strong first impression.

MSBT drew $30.6 million in inflows, charging a 0.14% management fee, the lowest among all bitcoin ETFs.

While inflows were evident in select products, they were not enough to offset selling pressure across the rest of the market. BlackRock’s IBIT led inflows with $40.38 million, reinforcing its role as a steady source of demand.

Outflows were led by Fidelity’s FBTC, which recorded a $79.12 million exit. Ark & 21Shares’ ARKB followed with $74.70 million in outflows, while Grayscale’s GBTC added $11.10 million in redemptions.

Total trading volume reached $3.04 billion, and net assets settled at $91.90 billion.

Ether ETFs: Net Outflow Despite Select Inflows

Ether ETFs posted a $18.6 million net outflow, even as some individual products attracted inflows.

BlackRock’s ETHB continued to build momentum with $44.23 million in inflows, and 21Shares’ TETH added $1.98 million.

However, outflows were broader across other funds. Fidelity’s FETH led with a $32.43 million outflow, followed by BlackRock’s ETHA at $20.64 million. Grayscale’s ETHE and its Ether Mini Trust recorded additional outflows of $6.11 million and $5.66 million, respectively.

Trading volume was $958.09 million, and net assets closed at $12.56 billion.

Solana and XRP: Solana Down, XRP Inactive

XRP ETFs showed no trading movement, with net assets holding at $950.14 million.

Solana ETFs continued to drift lower, posting a $1.9 million outflow across multiple funds. Grayscale’s GSOL led with $867,120 in exits, followed by Bitwise’s BSOL at $779,580 and VanEck’s VSOL at $274,100.

Trading volume stood at $23.86 million, and net assets closed at $793.91 million.

Market Takeaway: Uneven Demand vs. Persistent Redemptions

The overall pattern points to fragmentation in crypto ETF flows. New capital is entering the market, including through MSBT and IBIT, but it has not been sufficient to counter ongoing redemptions from established funds.

Crypto Fear and Greed Index

The Crypto Fear and Greed Index was at 14, indicating “Extreme Fear.”