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

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

Meanwhile, Iran is escalating its attacks, as Gulf countries reported new missile and drone strikes on Thursday. Prices of high-risk assets, including cryptocurrencies and stocks, are falling amid risk-averse conditions as investors continue to shun risk, while oil prices rise.

The price of West Texas Intermediate (WTI) crude oil has returned to above $100, after hitting a daily low below $93. A further escalation in the war could push oil prices higher, increasing overall macroeconomic uncertainty.

West Texas Intermediate crude oil price chart

Interest in exchange-traded funds (ETFs) for spot Bitcoin fluctuated on Wednesday, with total outflows of nearly $174 million, ending a two-day upward 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 were $87.71 billion. If outflows continued, it would signal weakening sentiment, limiting Bitcoin’s ability to recover.

Bitcoin ETF flows | Source: SoSoValue

Ethereum ETFs show a similar picture to Bitcoin, with spot ETFs recording outflows of approximately $7 million on Wednesday. Data from SoSoValue indicates that U.S.-listed ETFs have rebounded, attracting inflows of about $5 million on Monday and $31 million on Tuesday. Total inflows are $11.55 billion, while net assets under management are $12.21 billion.

Ethereum ETF flows | Source: SoSoValue

Interest in exchange-traded XRP funds declined even further, as shown by modest outflows of $1.32 million on Wednesday, after weak activity on Tuesday. XRP ETFs recorded outflows of about $2.3 million on Monday as well, leading to reduced risk appetite() ‌$BTC ‌