Crypto Spot ETFs Show Rotation, Not Capitulation
U.S. spot crypto ETFs delivered mixed signals last week (Feb 2–6), reflecting selective positioning rather than broad risk-off behavior amid market volatility.
ETF Flow Breakdown
▪️ Bitcoin ($BTC ): -$318M net outflows (week), but +$371M inflow on Feb 6 alone
▪️ Ethereum ($ETH ): -$166M net outflows, continued weakness into Feb 6 (-$16.75M)
▪️ Solana (SOL): Modest -$8.92M outflows, relatively resilient
▪️ XRP: +$39.04M net inflows, bucking the broader trend
What the Data Tells Us
This isn’t panic selling. It’s rotation.
Capital temporarily rotated out of BTC and ETH during volatility, but the sharp BTC inflow on Feb 6 suggests institutional buyers are still active on weakness. ETH’s continued outflows hint at short-term uncertainty around its relative performance.
$XRP attracting inflows while majors bleed highlights selective conviction trades, not blanket exposure.
Trader’s View
▪️ Expect choppy price action driven by ETF flow headlines
▪️ BTC inflows on down days = dip-buying signal
▪️ ETH remains vulnerable to relative underperformance short term
▪️ Rotation trades likely to dominate, not trend chasing
Investor’s View
▪️ ETF flows confirm crypto remains an allocatable asset class
▪️ BTC still viewed as primary hedge and liquidity anchor
▪️ Divergence across assets favors staggered accumulation, not lump-sum entries
▪️ Focus on strength, not narratives
Bottom Line
ETF data shows capital moving within crypto, not leaving it. In volatile markets, rotation is healthy. The smart money isn’t exiting—it’s repositioning.