Bitcoin ETFs See Record Inflows, XRP ETFs Experience Significant Decline
Recent data from SoSoValue indicates that Bitcoin spot ETFs took in a record $731 million on September 3, their largest single-day inflow since January 14. This significant influx of funds comes as part of a three-week streak of net inflows, totaling $3.8 billion, which is the strongest three-week run of 2026 for Bitcoin spot ETFs.
BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) was the largest contributor to this record-breaking day, accounting for $454 million of the total inflows. ARK's ARKB added $138 million, and Fidelity's FBTC contributed $74 million, with one fund alone responsible for more than 60% of the day's inflows.
Decline in XRP ETF Inflows Raises Questions
On the other hand, XRP spot ETFs experienced a significant decline in inflows, with $19 million taken in during the week to September 5, down 83% from the previous week's $110.5 million. This substantial drop in inflows raises questions about the direction of investor sentiment towards XRP.
However, it's essential to note that XRP ETFs are still positive for 2026, with a gain of about $515 million since January 1. The XRP price has also risen 39% over the past month against Bitcoin's 23% increase, suggesting that the coin's price may not be directly correlated with the decline in ETF inflows.
Ethereum ETF Inflows Also Experience Decline
Ethereum (CRYPTO:ETH) spot ETFs took in $218.4 million in the week to September 5, a 74% drop from the previous week's $824.4 million. Despite this decline, Ethereum ETFs are still ahead for the year, with a gain of about $863 million since January 1.
The Ethereum price has also risen 30% in the 30 days to September 6, outpacing Bitcoin's 23% increase over the same period. This suggests that the decline in Ethereum ETF inflows may not be a cause for concern, as the coin's price continues to perform well.
Interpreting ETF Flow Data
It's essential to understand that ETF flow data only accounts for the money that goes through the funds and does not reflect the overall market sentiment. Most crypto buying occurs on exchanges and never touches an ETF, which means that ETF inflows can drop when buyers go quiet or buy the coin on an exchange instead.
Furthermore, a slower rate of inflows does not necessarily indicate a negative trend. XRP and Ether ETFs took in less money in the week to September 5 than the previous week, but neither fund has lost money. A fund that takes in $19 million has not lost money, and people calling it a rotation are treating a smaller number as a negative one.
What to Watch Next
Two key indicators would need to occur for a rotation to be confirmed: XRP and Ether ETFs would need to post net outflow days, and Bitcoin spot ETFs would need to turn positive for the year. The funds have taken in $55.6 billion since they launched and hold $101.3 billion in assets, but they remain negative for 2026.
A three-week streak that leaves the funds in negative territory for the year only shows that they are recovering, so a rotation would mean Bitcoin ETFs posting a net positive annual figure. Until then, the flow data likely isn't showing a rotation, as Bitcoin ETFs had one big day driven mostly by one fund while XRP and Ether ETFs kept taking in money at a slower rate.
For those holding XRP or Ether, the funds still took in $19 million in the week to September 5, and XRP ETFs could post a week where money leaves. A week like that would be new information, but until then, the XRP price is up 39% over the past month, and its funds are still taking in money.