- 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.

West Texas Intermediate (WTI) crude oil prices have 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 bullish streak that saw inflows of about $69 million on Monday and nearly $118 million on Tuesday.

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

Bitcoin ETF Flows | Source: SoSoValue

Ethereum ETFs show a similar pattern, with spot ETF outflows of approximately $7 million on Wednesday. Data from SoSoValue indicates that U.S.-listed ETFs have seen a rebound, attracting about $5 million in inflows on Monday and $31 million on Tuesday. Total inflows amount to $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 ETFs also experienced outflows of around $2.3 million on Monday, leading to a decrease in risk appetite.