The U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) market faced a major shock on Monday, recording a combined net outflow of $755 million, one of the steepest single-day redemption waves since ETFs were first approved. The sell-off followed a turbulent weekend that wiped more than $500 billion from the global crypto market, sending prices tumbling by 10% across leading digital assets.
According to data from SoSoValue, spot Bitcoin ETFs saw $326.5 million in outflows, while Ethereum ETFs faced an even heavier withdrawal of $428.5 million. The timing, just after the weekend’s mass liquidation, signals widespread caution among institutional and retail investors who are waiting for more clarity on the macroeconomic front.
Bitcoin ETFs show selective resilience
Within the Bitcoin ETF segment, losses were spread across several major issuers. Grayscale’s GBTC recorded $145.4 million in outflows and Bitwise’s BITB saw $115.6 million withdrawn. Funds managed by Fidelity, Ark & 21Shares, and VanEck also reported redemptions.
However, not all funds were in the red. BlackRock’s IBIT bucked the broader trend with $60.36 million in net inflows, highlighting that parts of the market remain confident in Bitcoin’s long-term fundamentals. Despite Monday’s outflow, cumulative Bitcoin ETF inflows remain positive, totaling more than $62 billion to date, underscoring ongoing institutional interest even amid bouts of volatility.
Ethereum ETFs lead the exodus
Ethereum ETFs saw the sharpest wave of outflows since their inception. According to SoSoValue, BlackRock’s ETHA experienced $310 million in net outflows, marking its second-worst daily performance since launch. Across all seven active Ethereum ETFs, there were no inflows recorded on the day, making the sell-off particularly notable.
Total daily traded volume among Ethereum ETFs reached $2.82 billion, with combined net assets standing at $28.75 billion, about 5.6% of Ethereum’s total market capitalization. Analysts interpret the move as a temporary repositioning rather than an exodus, suggesting that institutions and market makers are recalibrating exposure following the historic weekend volatility.
Analysts point to macro caution
Market observers say this wave of ETF redemptions reflects caution, not capitulation. Vincent Liu, Chief Investment Officer at Kronos Research, said that Monday’s activity showed “post-liquidation caution,” explaining that many investors are “waiting for clearer macro signals before putting more capital to work.”
Similarly, Min Jung, Research Associate at Presto Research, said the data points to “short-term institutional risk management rather than a structural shift in sentiment.” She expects ETF flows to “begin to stabilize as markets absorb the weekend’s volatility and broader macro uncertainty.”
Trade tensions weigh on sentiment
The weekend’s liquidation frenzy was largely attributed to renewed U.S.-China trade war fears after President Donald Trump confirmed his intention to impose a 100% tariff on Chinese imports. The announcement triggered panic across global markets, with crypto assets leading the decline.
Although Trump later softened his stance, temporary damage to market sentiment had already been done.
Adding to the tension, China responded Tuesday, declaring it was “ready to fight to the end” in the trade dispute, language that further unsettled investors. At publication time, Bitcoin traded at $112,038 (down 2.88%) and Ether at $4,0o3 (down 4.39%), according to data from TradingView.
What comes next for ETF flows
The coming weeks are expected to be pivotal for digital asset markets. Analysts note that while short-term volatility may persist, the fundamental outlook for spot ETFs remains intact, driven by strong underlying demand from institutions seeking regulated exposure to crypto assets.
Investors are likely to keep a close watch on macroeconomic indicators, central bank decisions, and progress on trade negotiations. Any positive signal could quickly revive flows into Bitcoin and Ethereum ETFs. For now, though, the sharp outflows appear to be less about a loss of faith in crypto and more about a collective pause as markets digest one of the most turbulent weekends in recent crypto history.
Oleksii Shumak
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