Bitcoin and Ether ETFs Experience Significant Withdrawals Following Market Decline

Following a remarkable liquidation weekend amounting to $20 billion, spot Bitcoin and Ether ETFs in the United States have experienced substantial outflows, surpassing $755 million on Monday.

Bitcoin ETF Withdrawals

Spot Bitcoin ETFs noted a net outflow of $326.52 million. The largest withdrawals were observed in Fidelity’s Wise Origin Bitcoin Fund (FBTC), totaling $93.28 million, and Grayscale’s Bitcoin Trust (GBTC) with $145.39 million.

Other significant funds like Ark 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) also faced daily outflows of $21.12 million and $115.64 million respectively. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) saw inflows of $60.36 million.

The cumulative inflows stand at $62.44 billion, and the total net assets of diverse spot BTC ETFs have reached $157.18 billion. Notably, these funds recorded a total of $2.71 billion in inflows last week.

Spot Bitcoin ETFs see over $300 million in outflows. Source: SoSoValue

Ether ETF Withdrawals

Ether ETFs witnessed $428.52 million in outflows. The most notable drop was in BlackRock’s iShares Ethereum Trust (ETHA), which faced a $310.13 million outflow, followed by Grayscale’s Ethereum Trust (ETHE) with $20.99 million, and Fidelity’s Ethereum Fund (FETH) at $19.12 million.

The listed ETFs now hold $17.02 billion in net assets and account for 3.29% of the market share, with daily trading volume for ETH ETFs reaching $2.82 billion.

These withdrawals came in the wake of President Donald Trump’s announcement regarding the imposition of 100% tariffs on Chinese imports starting Nov. 1, which triggered significant market caution.

Public companies and ETFs currently control 12.2% of Bitcoin’s total supply, reflecting ongoing institutional accumulation this year.

Public companies and ETFs hold over 12% of Bitcoin supply. Source: Mister Crypto

Market Sentiment

Vincent Liu, the Chief Investment Officer at Kronos Research, remarked that these withdrawals stem from investor caution in light of ongoing liquidations. He stated, “Investors are staying on the sidelines, waiting for clearer macro direction before re-engaging. For now, market sentiment outweighs fundamentals in driving activity.”

He suggested that resolutions like potential agreements on the US government shutdown or progress in ongoing trade discussions could rejuvenate interest in Bitcoin and Ether ETFs.