Bitcoin and Ethereum ETFs Lose $2.6 Billion in a Week Amid Market Slump

Over the past week, U.S. investors have pulled $2.6 billion from Bitcoin and Ethereum exchange-traded funds (ETFs), marking one of the largest redemption periods in the funds' history. These outflows have contributed to downward pressure on the two leading cryptocurrencies by market capitalization.

Since October 29, Bitcoin ETFs have seen more than $1.9 billion exit, while Ethereum ETFs experienced $718.9 million in withdrawals. The latest data from Farside Investors highlights these significant movements, which coincided with a sharp dip in Bitcoin’s price below $100,000 for the first time since May.

Bitcoin recently traded at $103,428, marking a 2.6% increase on the day but still 18% lower than its record of $126,080 set in October. Ethereum, on the other hand, was priced at $3,439, up over 5% in the past 24 hours, though it has seen a 13% drop over the past week.

These losses follow broader market uncertainty, partly fueled by concerns surrounding U.S. President Donald Trump's trade war with China, the government shutdown, and diminishing prospects for a third interest rate cut by the Federal Reserve before the year’s end. Since October, investors have shifted away from crypto and other risk-on assets, adding to the volatility.

Ethereum’s recent struggles are also attributed to the escalating trade war and fears surrounding Trump’s tariffs, which have led to market instability. Ethereum has failed to recover close to its record high of $4,946 in August.

Despite the current dip, Bitcoin and Ethereum ETFs have performed well overall. The launch of Bitcoin and Ethereum ETFs last year allowed institutional investors and traditional buyers to gain exposure to crypto through exchange-listed funds. According to Ric Edelman, financial advisor and head of the Digital Assets Council of Financial Advisors, the Bitcoin ETF has raised over $100 billion in assets since its debut, with $145.4 billion in total managed assets.

While $2 billion in outflows may sound substantial, Edelman suggests that it represents only a small portion (2%) of the overall assets under management. He emphasizes that Bitcoin’s price resilience amid these outflows demonstrates the growing maturity of the crypto market, as institutional investments continue to flow in, maintaining stability even during market setbacks.