Ethereum ETFs extend losses as altcoins gain momentum

US Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) are seeing sustained withdrawals as the focus shifts to altcoins such as Solana and XRP.

During moments of macro uncertainty in early 2026, BTC failed to behave like a hedge asset,unlike gold, which rallied strongly. While flows are shifting, Bitcoin itself is beset by greater questions about its role in markets. According to a recent report, Bitcoin is in the midst of an “identity crisis,” in which its historical narratives no longer hold the authority they once did.

Formerly portrayed as digital gold, an inflation hedge, and the best store of value in crypto, Bitcoin faces fierce competition today from other financial technologies and assets. Bitcoins price has fallen more than 40% from its peak, analysts say, and the usual catalysts of a rally, dip buyers, or speculative interest have not been there.

Instead, gold is becoming a macro hedge, stablecoins are widely used for payments, and prediction markets are attracting speculative activity away from traditional crypto trading.

Continuing arguments regarding the use of mining power and technological risks, such as quantum computing, changing AML/KYC regulations, and central bank digital currencies (CBDCs), all underscore the fact that Bitcoin‘s future identity isn’t solely a function of price, but rather depends on how it coexists within a rapidly changing financial and policy context.

Collectively, these forces illustrate that the current identity crisis for Bitcoin transcends short-term price volatility and touches on a much broader issue.