James Richardson
After suffering one of the largest crypto liquidation events in recent history, U.S. spot Bitcoin and Ethereum ETFs staged a strong rebound on Tuesday, attracting a combined $340 million in net inflows, according to fresh data from SoSoValue. This marks a notable recovery from the previous dayโs $755 million in outflows, as investor confidence begins to cautiously return.
Spot Bitcoin ETFs registered $102.6 million in total net inflows on Tuesday, reversing part of Mondayโs steep withdrawals. Fidelityโs FBTC led the charge with $132.67 million in new capital, signaling strong institutional accumulation.
Funds managed by Ark & 21Shares and Bitwise also recorded positive inflows, while BlackRockโs IBIT experienced $30.8 million in outflows. Valkyrieโs BRRR followed with an additional $14 million exiting the fund. Despite mixed flows among issuers, the overall momentum turned positive for the Bitcoin ETF segment, hinting at renewed buying interest after the panic-driven sell-off.
Ethereum ETFs Outperform with $236 Million in New Inflows
Ethereum-based ETFs outshined their Bitcoin counterparts, attracting a robust $236.22 million in total daily inflows across six separate funds. Fidelityโs FETH once again topped the list, bringing in $154.62 million, while funds managed by Grayscale, Bitwise, VanEck, and Franklin Templeton also reported notable inflows.
This marks one of Ethereum ETFsโ strongest single-day rebounds since their recent launch, reflecting growing confidence among investors who view the weekendโs market drop as a short-term overreaction rather than a long-term structural decline.
Cautious Optimism After Historic Market Liquidations
The recovery comes just days after one of cryptoโs largest liquidation events, which wiped out over $500 billion in total market capitalization and triggered an average 10% price drop across major digital assets. The sell-off was sparked by U.S. President Donald Trumpโs announcement confirming a 100% tariff on Chinese imports, igniting fears of a renewed U.S.-China trade war.
Although both Bitcoin and Ethereum prices have stabilized โ with Bitcoin rising 0.58% to $112,423 and Ethereum gaining 2.84% to $4,112 โ analysts remain cautious. Many believe that while inflows suggest institutional resilience, macro uncertainties could continue to drive volatility through the remainder of October.
Experts Warn of Short-Term Choppiness
Vincent Liu, CIO at Kronos Research, noted earlier this week that the sharp outflows on Monday reflected post-liquidation caution among large investors. He emphasized that institutions are likely waiting for clearer macro signals before recommitting significant capital.
Echoing similar sentiments, Augustine Fan, Head of Insights at SignalPlus, urged caution over reading too deeply into daily ETF activity:
โWe shouldnโt overinterpret short-term data following such an extreme market event. Expect choppy price movements as headline-driven risks rise, especially with the November 1 tariff deadline looming,โ Fan said.
Market Outlook: Eyes on U.S.-China Trade Developments
While Tuesdayโs ETF inflows hint at renewed accumulation and market recovery, sentiment remains fragile. Traders continue to monitor developments in the U.S.-China trade dispute, which could either stabilize markets or trigger another wave of volatility.
With both Bitcoin and Ethereum showing resilience, analysts expect continued inflows into ETFs as institutional investors look to buy the dip while positioning for potential upside once macroeconomic uncertainty eases.
In short, the rebound in ETF flows marks a tentative return of investor confidence, but the crypto marketโs next major move will likely depend on how global trade tensions unfold in the coming weeks.
