Crypto Carnage: Bitcoin ETFs Bleed $244M as XRP Funds Defy the Downturn

Bitcoin exchange-traded funds (ETFs) experienced a significant sell-off on Thursday, with net outflows totaling $244 million, according to data from CoinDesk. The downturn also affected Ethereum and Zcash funds, with the latter extending a series of October outflows. Meanwhile, XRP ETFs stood out as the only crypto funds to close in positive territory, bucking the broader market trend.

The outflows come as Bitcoin's price retreated to near $82,000 following a massive $1 billion liquidation event that rattled leveraged positions across exchanges. The liquidations, which occurred over a short period, exacerbated selling pressure and contributed to the negative sentiment surrounding crypto ETFs. Ethereum funds also faced redemptions, though specific figures were not immediately available. Zcash's continued outflows highlight waning investor interest in privacy-focused assets amid regulatory scrutiny.

The divergence in ETF performance underscores shifting investor preferences within the crypto sector. While Bitcoin and Ethereum remain the largest holdings, XRP's resilience may signal growing confidence in its legal clarity following Ripple's partial court victories. Market analysts are closely watching whether the outflows will persist or reverse as Bitcoin stabilizes. The next few trading sessions will be critical in determining if this is a temporary correction or the start of a deeper downturn.