- Bitcoin, Ethereum, and XRP face capital outflows amid net withdrawals from exchange-traded funds.

Interest in digital asset investment products has remained volatile amid the ongoing war between the United States, Israel, and Iran, now in its second month. U.S. President Donald Trump announced a military victory on Wednesday, despite the war continuing.

Meanwhile, Iran is escalating its attacks, with Gulf countries reporting new missile and drone strikes on Thursday. High-risk assets, including cryptocurrencies and stocks, are declining amid risk-averse conditions, while oil prices are rising.

The West Texas Intermediate (WTI) crude oil price has risen back above $100 after hitting a daily low below $93. An escalation in the conflict could push oil prices higher, increasing macroeconomic uncertainty.

WTI Crude Oil Price Chart

Interest in Bitcoin ETFs fluctuated on Wednesday, with total outflows reaching nearly $174 million, ending a two-day inflow streak that saw approximately $69 million on Monday and nearly $118 million on Tuesday.

Total inflows amounted to $55.95 billion, with net assets under management at $87.71 billion. Continued outflows would indicate declining sentiment, limiting Bitcoin’s recovery prospects.

Bitcoin ETF Flows | Source: SoSoValue

Ethereum ETFs show a similar pattern to Bitcoin, with spot ETF outflows of about $7 million on Wednesday. Data from SoSoValue indicates that U.S.-listed ETFs have seen a rebound, with approximately $5 million in inflows on Monday and $31 million on Tuesday. Total inflows stand at $11.55 billion, with net assets under management at $12.21 billion.

Ethereum ETF Flows | Source: SoSoValue

Interest in XRP ETFs has declined further, as evidenced by modest outflows of $1.32 million on Wednesday, following weak activity on Tuesday. XRP ETF outflows also reached around $2.3 million on Monday, leading to decreased risk appetite.

XRP ETF Flows | Source: SoSoValue