U.S. bitcoin ETFs returned to positive territory Tuesday with $118.86 million in net inflows, led almost entirely by Blackrock's IBIT fund, which accounted for $122 million of the demand. The recovery followed Monday's redemptions and reinforced the fund's position as the primary destination for fresh institutional capital.
Morgan Stanley's MSBT added $7.84 million, while Grayscale's Bitcoin Mini Trust recorded a $10.97 million outflow. Bitcoin ETF trading value reached $1.84 billion, with net assets closing at $110.68 billion.
Ether ETFs moved in the opposite direction, recording their sixth consecutive day of net outflows. The group lost $201.89 million, with the entire exit coming from Blackrock's ETHA. Every other ether ETF recorded no net movement. Trading activity for ether products reached $719.91 million, with net assets falling to $17.36 billion.
Blackrock's U.S. head of equity ETFs, Jay Jacobs, attributed some of the bitcoin ETF demand to lower thresholds for in-kind transfers, which he said have "opened the floodgates" for investors looking to move direct bitcoin holdings into ETF structures. Jacobs also noted a broader shift toward finding "the best way to own bitcoin in my portfolio," suggesting the transition reflects investor demand for custody solutions and access to derivatives strategies.
Among other crypto assets, XRP ETFs returned to inflows with $3.14 million, though flows varied across individual products. Bitwise's XRP fund attracted $10.55 million while Franklin's XRPZ lost $4.07 million. HYPE ETFs added $2.98 million, while Solana ETFs lost $3.68 million. Zcash and NEAR ETFs recorded no net flows.
The product pipeline continues to expand, with the Winklevoss twins filing for a spot Zcash ETF under the proposed ticker WINK, adding to competition in the single-asset ETF market.
