BTC and ETH Spot ETFs Bleed Nearly $1B: Capital Rotates to SOL and XRP Amid Market Slump

Hold on tight—Bitcoin and Ethereum spot ETFs just posted combined outflows of almost $1 billion, the heaviest in recent weeks. As @pawnie_ highlighted in his daily recaps, this sharp reversal from earlier inflows signals investor jitters. Meanwhile, Solana and XRP ETFs are bucking the trend with steady inflows, pointing to a quiet rotation in institutional money. With BTC dipping below $90K and Fear & Greed at 34, what's driving this shift?

The numbers don't lie. Over the past week, BTC ETFs shed $483M in one brutal day alone, per @pawnie_'s Web3 recap, while ETH lost $230M that same session. Combined, they've hemorrhaged $995M recently. Latest daily flows? Jan 22 saw BTC ETFs outflow $32M, ETH $42M. Contrast that with SOL's +$1.7M and XRP's +$2M inflows. Why the exodus? Trump tariff fears tanked BTC below $88K, wiping $150B from crypto caps. Institutions are de-risking majors amid six straight loss days for BTC. Yet alts shine: SOL ETFs pulled inflows despite the storm, XRP too. This isn't panic—it's selective. YTD, SOL ETFs net +692K SOL, XRP +14M tokens, vs. BTC/ETH losses. Rotation to high-utility L1s like Solana's speed and XRP's payments edge. Grayscale even filed for NEAR ETF, hinting broader alt interest.

BTC hovers near $90K, ETH at $2,960—outflows amplify downside pressure, with $2.3B options expiry looming today. Crypto market cap down $150B, liquidations spiking. SOL and XRP? Inflows bolster resilience, potentially sparking alt rallies if rotation accelerates. BlackRock notes ETH's 65% tokenized assets share, but capital flight underscores majors' vulnerability in downturns. Broader ripple: Miners pivot to AI, hashrate drops 15%. Prediction markets hit $814M ATH volume, showing bets on recovery. But short-term, expect volatility as ETFs dictate flows.

Massive BTC/ETH outflows mark a sentiment pivot, but history shows dips precede bounces—especially with institutional buys like Strategy's 22K BTC scoop. Watch SOL/XRP for rotation clues; alts could lead the rebound. Stay positioned: Crypto's long game favors innovators. As ARK eyes $28T digital assets by 2030, this shakeout weeds weak hands. Buckle up—next leg up starts from fear.