- Bitcoin spot ETFs saw $109M in outflows for a third straight day, reflecting sustained risk-off sentiment among crypto investors.
- Teucrium is launching a 2x leveraged XRP ETF on April 8, a rare debut move that highlights growing demand for altcoin-based products.
- Ethereum ETF flows remained flat, indicating cautious investor sentiment that may extend to other altcoins amid market uncertainty.
Bitcoin spot ETFs faced continued pressure on April 7, recording a net outflow of $109 million, according to Wu Blockchain. This marked the third consecutive day of redemptions, signaling persistent risk-off sentiment among crypto investors. Ethereum ETFs mirrored the uncertainty with flat net flows across all nine funds, highlighting investor hesitation. The contrasting movements in these leading crypto ETFs reflect growing anxiety across the digital asset landscape.
Market Sentiment Sours Amid Outflows
A $420.56 million one-day withdrawal from Bitcoin ETFs was revealed by Alva, which fueled the already negative market sentiment. This drop indicates that investors are becoming more concerned about regulatory obstacles and macroeconomic volatility. Thus, such regular withdrawals could put a burden on liquidity and drive down the price of Bitcoin..
Ethereum, on the other hand, saw no inflows or outflows. Hence, investors appear to be sitting on the sidelines. This behavior reflects cautious sentiment and a wait-and-see approach. Moreover, this stagnancy could carry over into other altcoins, potentially impacting broader market activity.
XRP 2x ETF Debuts in Unusual Move
Amid turbulent ETF flows, Teucrium Investment Advisors is stepping into uncharted territory. The firm will launch a 2x leveraged XRP ETF—XXRP—on April 8. This product aims to deliver twice the daily performance of Ripple’s XRP and will list on NYSE Arca.
Bloomberg ETF expert Eric Balchunas noted the unusual move, calling it rare for a crypto asset’s first ETF to be leveraged. While the SEC has not approved a spot XRP ETF, Balchunas expects approval odds to remain high.
However, leveraged ETFs pose higher risks. Teucrium warned that volatility and reduced XRP usage may hurt the fund’s performance. The 1.85% management fee reflects its short-term trading nature.
Additionally, several firms—Bitwise, WisdomTree, 21Shares, Canary Capital, and Franklin Templeton—await SEC decisions on spot XRP ETFs. The SEC acknowledged these filings but hasn’t issued any verdicts yet.
The January approval of Bitcoin spot ETFs sparked renewed interest in crypto investment products. Moreover, Donald Trump’s 2024 inauguration led to a regulatory shift, encouraging altcoin ETF applications. Hence, the evolving ETF landscape could reshape market dynamics and attract fresh capital flows across the crypto ecosystem.
