Investors have cashed out a combined $2.6 billion from U.S. Bitcoin and Ethereum exchange-traded funds (ETFs) over the past week, marking one of the largest redemption periods in the funds’ history. Since October 29, more than $1.9 billion has left Bitcoin funds, while $718.9 million has been pulled out of their Ethereum counterparts, according to data from Farside Investors. These significant outflows have contributed to downward pressure on the two largest cryptocurrencies by market value.
On Tuesday, Bitcoin dropped below $100,000 for the first time since May. BTC was recently trading at slightly over $103,428, up 2.6% on the day but still about 18% below its October record of $126,080, according to CoinGecko data. Ethereum was changing hands for $3,439, marking a more than 5% 24-hour jump, although it has plummeted by 13% over the past week. The second-biggest digital coin by market capitalization has struggled to trade near its August record of $4,946.
Investors have largely veered away from crypto and other risk-on assets since October amid concerns over several factors. These include U.S. President Donald Trump’s escalation of the trade war against China, the ongoing government shutdown, low market liquidity, and diminishing prospects of a third U.S. interest rate cut before the end of the year.
Despite Trump’s pro-crypto rhetoric and policy stance, Bitcoin has experienced shocks along with tech stocks in recent months. These challenges have stemmed from ongoing macroeconomic uncertainties. Notably, in February, spot Bitcoin ETFs endured their longest and most difficult losing streak, with investors withdrawing over $2.2 billion during eight consecutive days following the president’s tariff announcements.
Financial advisor Ric Edelman, who heads the Digital Assets Council of Financial Advisors, struck an optimistic tone. He highlighted the significant inflows both categories of funds have generated within their brief histories. The Bitcoin ETFs had the most successful debut in ETF history following their January 2024 approval and now manage a total of $145.4 billion in assets.
“Looking at dollar flows distorts the picture,” Edelman told Decrypt. “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 is because of the strong institutional inflows that are simultaneously occurring. This wouldn’t have been the case 10, five, or even two years ago, and shows the continuing maturity of this asset class.”
https://bitcoinethereumnews.com/bitcoin/bitcoin-ethereum-etfs-shed-2-6-billion-in-assets-over-the-past-week/