Ethereum and Bitcoin ETFs had their worst week ever
Record high outflows raise big questions about institutional trust in Bitcoin and Ethereum.
Bloody week for Ethereum and Bitcoin ETFs in the USA
Last week was the busiest week yet for US-based spot Ethereum and Bitcoin ETFs. According to data from SoSoValue investors withdrew nearly $800 million from ETH products and over$900 million from BTC funds.This is the sharpest week of outflows since these products launched.For a market that has long been supported by the narrative of institutional adoption, this is a clear sign that trust is faltering.
Ethereum ETFs lose almost $800 million
Spot Ethereum ETFs saw outflows of $795.6 million in the week ended September 26.While trading volumes rose to over $10 billion, redemptions outpaced inflows almost every day.
Two funds were particularly affected:
- BlackRock ETHA: lost over $200 million but still manages more than$15.2 billion in assets.
- Fidelity FETH: hit even harder with $362 milliondrains.
On Thursday and Friday alone, $250 million were withdrawn.The triggers were technical breaks in the charts, macroeconomic concerns and chain reactions in derivatives.ETH briefly slipped below the important $4,000 mark, but was able to fight its way back to $4,020 by Saturday.
Bitcoin ETFs follow with $900 million in outflows
Bitcoin funds were not spared either.Spot BTC ETFs recorded $902.5 million in outflows. The sell-off was led by Fidelity's FBTC, which lost $300.4 million on Friday. BlackRock's IBIT Fund proved more stable, shedding just $37.3 million - reflecting its dominancefurther highlighted in the market.
IBIT has been able to regularly expand its market share and often controls more than 80 percent of all spot BTC ETF assets.Nevertheless, even the market leader has not yet applied for a Spot Solana ETF, while some competitors are already diversifying their offerings.
What drives mass outflows?
Three main factors explain the exodus:
- Technical Weakness: ETH and BTC broke through key support zones, forcing many traders to exit leveraged positions.
- Macro print: Rising inflation and ongoing concerns about interest rates are dampening risk appetite and reducing demand for speculative crypto assets.
- Cascading liquidations: As prices fell, long positions in leveraged trading were liquidated, triggering self-reinforcing selling pressure.
Conclusion
Ethereum and Bitcoin ETFs just endured their worst week of outflows ever.While ETH managed a shaky rebound, both leading cryptocurrencies remain under pressure.If macroeconomic headwinds persist, ETF redemptions could continue to increase, pushing prices even lower before a sustained recovery occurs.For traders, the message is clear: keep a close eye on fund flows - they are now one of the best early indicators of the direction of crypto prices.
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