Bitcoin ETFs Bleed $1.26B as HYPE and XRP Funds Surge

During the week of May 18–22, spot bitcoin ETFs saw net outflows of $1.26 billion, one of the weakest weekly performances of 2026. BlackRock's IBIT led with $1.01 billion in withdrawals, followed by Fidelity's FBTC ($111.5M) and Ark & 21Shares' ARKB ($106.8M). Only Morgan Stanley's MSBT posted a modest $1.1 million inflow. Combined with the prior week, bitcoin funds lost over $2.26 billion in 14 days, pushing total assets under management below $100 billion. Ethereum ETFs also suffered, with $216 million in outflows for the week and a 10-session losing streak totaling $471 million. The macro backdrop includes persistent inflation, Kevin Warsh's confirmation as Fed chair, and a 39% probability of a rate hike per CME futures. However, institutional capital rotated within crypto: spot XRP ETFs attracted $22 million, Solana ETFs $15.6 million, and newly launched HYPE ETFs (21Shares' THYP on Nasdaq and Bitwise's BHYP on NYSE) drew $72.4 million in their first full week. Hyperliquid's token HYPE has gained 147% year-to-date to above $62, supported by $2.9 trillion in 2025 perpetual futures volume and a deflationary buyback mechanism. Bitwise CIO Matt Hougan called Hyperliquid a "super app" targeting the $600 trillion global asset market. The data suggests investors are selectively reweighting within crypto rather than exiting.