TLDR
- Spot Bitcoin crypto ETFs recorded $40.47 million in net outflows on Monday.
- BlackRock’s IBIT led Bitcoin ETF losses with $100.65 million in outflows.
- Fidelity’s FBTC and Bitwise’s BITB saw small inflows despite overall decline.
- Ether crypto ETFs posted $145.68 million in outflows for a third straight day.
- BlackRock’s ETHA recorded the largest Ether ETF withdrawal at $117.86 million.
Spot Bitcoin and Ethereum exchange-traded funds (crypto ETFs) recorded further outflows on Monday as political instability deepened. Investors pulled back sharply amid growing distrust in US governance and heightened macroeconomic uncertainty. As political demonstrations expanded across the country, crypto ETFs continued to face withdrawals and weakening sentiment.
Bitcoin ETFs Mark Fourth Straight Day of Losses
Bitcoin crypto ETFs saw $40.47 million in net outflows on Monday, extending their losing streak to four consecutive sessions. BlackRock’s IBIT led the downturn, recording $100.65 million in single-day net outflows. However, Fidelity’s FBTC and Bitwise’s BITB attracted modest inflows of $9.67 million and $12.05 million, respectively.
Despite minor inflows, the overall pressure on Bitcoin crypto ETFs remained, highlighting reduced market participation and shrinking demand. The total net inflow in Bitcoin crypto ETFs stands at $61.50 billion to date. Meanwhile, net assets slipped to $149.66 billion, which now represents 6.76% of Bitcoin’s market capitalization.
Bitunix analysts warned that the US political crisis is “a stress test of institutional confidence,” amid shrinking trust in governance. They noted that the shutdown’s impact may expand beyond liquidity and affect structural belief in the system. “The market’s next move may depend on whether institutions can restore consensus amid deep division,” the analysts stated.
Ether ETFs Extend Losses for Third Consecutive Day
Ethereum-based crypto ETFs also posted losses, with net outflows totaling $145.68 million during Monday’s session. This marked the third straight day of withdrawals from Ether crypto ETFs, amid elevated risk aversion. BlackRock’s ETHA saw the sharpest pullback, shedding $117.86 million in assets.
Fidelity’s FETH followed with $27.82 million in outflows, amplifying overall Ether ETF market declines. The pattern showed sustained withdrawal pressure, reflecting fading investor demand under macro and political strains. Analysts observed weaker bid depth and low volume across Ethereum ETF products.
Political Unrest Fuels Liquidity Drain in Crypto ETFs
Nationwide protests erupted as the US government shutdown entered its 18th day, signaling further erosion of institutional credibility. Demonstrators gathered across cities, chanting slogans like “We the People Rule” and “Resist Fascism,” according to Politico. The growing unrest has rattled markets and increased investor hesitation.
Bitunix underscored that the political unrest is reshaping perceptions of US market stability and institutional durability. The analysts said continued shutdowns may weaken both confidence and trust in structural governance. Crypto ETFs, already in decline, are bearing the brunt of investor flight amid uncertain leadership.
Liu added that “volatility will likely stay elevated until there’s a clearer policy path or restored political stability.” Until then, both Bitcoin and Ethereum crypto ETFs may continue to face outflows. As conditions evolve, a reversal may only occur once trust and clarity return to the political system.
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