Bitcoin, Ethereum ETFs Shed $2.6 Billion in Assets Over the Past Week
Investors have withdrawn a total of $2.6 billion from U.S. Bitcoin and Ethereum exchange-traded funds (ETFs) over the past week, one of the largest redemption periods for these funds. Data indicates $1.9 billion was pulled from Bitcoin ETFs and $718.9 million from Ethereum ETFs, causing downward pressure on both cryptocurrencies. Bitcoin's price fell below $100,000 for the first time since May, recovering slightly to $103,428 but still 18% below its October peak. Ethereum's price rose by 5% in 24 hours to $3,439 but remains 13% lower over the past week. Investors' retreat from cryptocurrencies is attributed to macroeconomic uncertainties, such as U.S.-China trade tensions, the government shutdown, and low market liquidity. Despite this, financial advisor Ric Edelman highlights the overall growth and institutional inflows into Bitcoin ETFs, which currently manage $145.4 billion in assets, emphasizing the increasing maturity of the cryptocurrency market.
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Massive Outflows from Bitcoin and Ethereum ETFs
Investors have cashed out a combined $2.6 billion from U.S. Bitcoin and Ethereum exchange-traded funds over the past week, marking one of the largest redemption periods in the funds' history. Specifically, more than $1.9 billion exited the Bitcoin funds, while $718.9 million was withdrawn from Ethereum funds since October 29, according to data from Farside Investors. This large-scale redemption has exerted downward pressure on the two largest cryptocurrencies by market value.
Recent Performance of Bitcoin and Ethereum
On Tuesday, Bitcoin dropped below $100,000 for the first time since May. BTC was recently trading at $103,428, up 2.6% on the day but still about 18% below its October peak of $126,080, according to CoinGecko data. On the other hand, Ethereum saw a 5% jump in 24 hours, trading at $3,439, but it has declined 13% over the past week. The second-largest cryptocurrency by market capitalization is struggling to approach its August record high of $4,946.
Broader Market Concerns Impact Crypto Investments
Investors have broadly pulled back from crypto and other risk-on assets since October, driven by worries over:
- U.S. President Donald Trump's escalating trade war with China
- The ongoing government shutdown
- Low market liquidity
- Diminishing chances of a third U.S. interest rate cut before year's end.
Despite Trump's pro-crypto rhetoric and policies, Bitcoin has suffered alongside tech stocks in recent months due to macroeconomic uncertainties. In February, Bitcoin spot ETFs experienced their longest losing streak, with over $2.2 billion in outflows during eight consecutive days following tariff announcements.
The Role of Bitcoin and Ethereum ETFs
Approved by the SEC last year, Bitcoin and Ethereum ETFs allow traditional investors and institutions to gain exposure to cryptocurrencies through funds listed on stock exchanges. These ETFs have been instrumental in bridging the gap between crypto assets and traditional finance, offering a more accessible way to participate in the crypto market.
Expert Perspective on Recent ETF Outflows
Financial advisor Ric Edelman, who heads the Digital Assets Council of Financial Advisors, offered an optimistic take. He emphasized the strong inflows that both Bitcoin and Ethereum ETFs have seen in their relatively short histories. For instance, the Bitcoin ETFs had the most successful debut in ETF history following their January 2024 approval and now manage $145.4 billion in assets.
Edelman explained: "Looking at dollar flows distorts the picture. The Bitcoin ETFs have collected more than $100 billion in assets, so while $2 billion in outflows sounds like a lot, it's only 2%—hardly noteworthy." He added: "What is noteworthy is that, despite these outflows, Bitcoin's price hasn’t crashed. This reflects the strong institutional inflows that are simultaneously occurring, signaling the continuing maturity of this asset class."