Crypto ETFs Enter Selective Phase as Flows Favor Cheap Funds

Crypto exchange-traded funds are drawing a narrower set of inflows in 2026, with investors shifting money into lower-fee Bitcoin products, ETFs tied to Hyperliquid, and actively managed multi-token funds. The iShares Bitcoin Trust (IBIT) has posted year-to-date net outflows while retaining roughly 60% of the spot Bitcoin ETF market.

Bitcoin traded mostly between $60,000 and $70,000 and was down more than 25% year-to-date through July 20, 2026. Newer, lower-cost Bitcoin products gathered material flows. The Morgan Stanley Bitcoin Trust (MSBT), launched in April 2026, recorded over $400 million of net inflows through Morgan Stanley’s wealth-management distribution. The Grayscale Bitcoin Mini Trust (BTC) led on net inflows with more than $600 million year-to-date and charges a 0.15% expense ratio, about 10 basis points below IBIT.

Ether has fallen about 36% year-to-date and has behaved as a higher-beta asset. Ether-related ETFs experienced larger outflows than Bitcoin funds overall. The Grayscale Ethereum Staking Mini Trust (ETH) and the iShares Staked Ethereum Trust (ETHB) recorded significant year-to-date inflows. Grayscale’s ETH product charges 15 basis points. ETHB, launched in March 2026, is operating with a 12-basis-point fee waiver and will charge 25 basis points once that waiver ends.

Investor interest in single-asset altcoin ETFs is concentrated in a few names. XRP and Solana ETFs each hold roughly $1 billion in assets. Single-asset ETFs tied to Dogecoin, Chainlink and Sui typically sit near or below $100 million. Many of those funds launched in the first half of 2026 and have produced modest net inflows as initial buyers largely held positions.

ETFs connected to Hyperliquid and the HYPE token drew notable early demand. Hyperliquid’s decentralized trading platform generates transaction revenue tied to the token’s use. The Bitwise Hyperliquid ETF (BHYP), the 21Shares Hyperliquid ETF (THYP) and the Grayscale Hyperliquid Staking ETF (HYPG) attracted strong early inflows after their launches.

Product innovation in 2025 and 2026 emphasized actively managed, multi-token ETFs. The CoinShares AltCoins ETF (DIME) launched in the fourth quarter of 2025 to provide an active view on altcoins outside Bitcoin, Ethereum and stablecoins. The GSR Crypto Core3 ETF (BESO) launched in April 2026 and the 21Shares Active Crypto ETF (TKNS) launched in May 2026; those funds access crypto exposure by holding other exchange-traded products. The T. Rowe Price Active Crypto ETF (TKNZ) is the first multi-token spot ETF to hold multiple tokens directly and charges 75 basis points; several peer funds have expense ratios near 100 basis points.

Financial firms continue to explore tokenization, stablecoins and the integration of crypto trading alongside equities on their platforms. The CLARITY Act is moving through legislative steps that could provide clearer rules for market participants if it is finalized.

Year-to-date ETF flows show larger inflows into lower-fee Bitcoin funds, Hyperliquid-linked ETFs and actively managed multi-token products, while many higher-fee or passive multi-token and higher-beta single-asset funds recorded smaller net inflows or net outflows.