TLDR
- Crypto ETFs Hit With $755M Outflows After $500B Market Crash
- Bitcoin & Ethereum ETFs See Record Outflows Amid Trade Tensions
- U.S. ETFs Shed Millions as Crypto Liquidation Shocks Market
- Massive ETF Exodus Follows $20B Crypto Liquidation, Trade Fears
- Ethereum ETFs Lead $755M ETF Outflows Amid Trump’s Tariff Threat
Massive capital outflows struck U.S.-listed spot Bitcoin and Ethereum ETFs on Monday, following one of crypto’s largest liquidation events. Combined redemptions from both asset classes surpassed $755 million, marking the highest single-day withdrawal since August. The event followed a weekend rout that erased over $500 billion from crypto markets, triggered by U.S.-China trade tensions.
Bitcoin ETFs Register Over $300 Million in Withdrawals
Spot Bitcoin ETFs experienced $326.52 million in net outflows on Monday as uncertainty pressured institutional positioning. Grayscale’s GBTC recorded the largest redemption with $145.39 million exiting the fund, followed by Bitwise’s BITB losing $115.64 million. Fidelity’s FBTC also saw substantial exits at $93.28 million, while ARKB posted $21.12 million in withdrawals.
Despite broad selling, BlackRock’s IBIT reported net inflows of $60.36 million, offering some balance to the sector-wide retreat. While redemptions were widespread, total cumulative inflows for Bitcoin ETFs still stood at $62.44 billion. Net assets across all spot Bitcoin ETFs reached $157.18 billion, representing nearly 7% of Bitcoin’s total market value.
The movement came after crypto markets saw a sharp decline of nearly 10%, driven by fears surrounding a new U.S.-China trade standoff. President Donald Trump’s announcement of a 100% tariff on all Chinese imports heightened risk-off sentiment. As a result, short-term positioning adjusted rapidly, resulting in record outflows from digital asset investment products.
Ethereum ETFs Lead with $428 Million in Outflows
Ethereum ETFs faced even steeper pressure, registering $428.52 million in net outflows, marking a significant reversal from the previous week’s inflows. BlackRock’s iShares Ethereum Trust (ETHA) led losses with $310.13 million in redemptions—its second-worst daily performance since inception. Grayscale’s ETHE and Fidelity’s FETH saw outflows of $20.99 million and $19.12 million, respectively.
Smaller Ethereum-focused products, such as Bitwise’s ETHW and VanEck’s ETHV, also posted modest daily losses. Cumulatively, ETHA remained the largest fund with $17.02 billion in net assets and a 3.29% share of the Ether ETF market. Trading volume across Ethereum ETFs reached $2.82 billion for the day, reflecting high activity despite net capital flight.
No Ethereum ETFs recorded inflows during the session, signaling a risk-off approach toward Ether amid heightened volatility. This followed two consecutive weeks of strong inflows into ETH funds, which had pulled in $1.3 billion and $488 million previously. The reversal underscores the impact of shifting macroeconomic developments on short-term fund allocations.
Outflows Follow Historic Liquidation and Renewed Trade Risks
The sharp ETF withdrawals came after crypto markets faced a $20 billion liquidation over the weekend, leading to steep price declines. This liquidation erased significant capital from the broader digital asset market, impacting both retail and institutional sentiment. Although prices rebounded slightly after Trump softened his trade rhetoric, fund outflows continued.
Market watchers attributed the movement to short-term risk rebalancing, not a fundamental change in asset preference. Over the past two weeks, spot Bitcoin and Ethereum ETFs had accumulated strong inflows totaling more than $6 billion. Monday’s session marked a pause as capital waited for clearer signals from global economic developments.
With U.S.-China tensions intensifying and rare earth trade measures escalating, asset managers are expected to tread carefully. As public companies and ETFs now control over 12% of Bitcoin’s supply, large-scale shifts in ETF flows can have wider price implications. Market participants anticipate stabilization once macro uncertainties ease and volatility declines.
