Daniel Walker
U.S. spot Bitcoin and Ethereum ETFs showed diverging trends on Wednesday as investors remained cautious following Friday’s unprecedented flash crash.
Bitcoin ETFs recorded $104.1 million in net outflows on October 15, wiping out the $102.7 million gains from Tuesday. This continues the volatile flow patterns seen after last week’s market shock.
Grayscale’s GBTC led the withdrawals with $82.9 million, followed by Invesco’s BTCO at $11.1 million, according to data from PRIME. BlackRock’s IBIT also reported $10.1 million in outflows, while other funds remained flat.
Since Friday, Bitcoin ETFs have seen a cumulative $332.3 million in net outflows, reflecting ongoing cautious sentiment among investors.
Ethereum ETFs Attract Strong Inflows
In contrast, Ethereum ETFs drew $169.6 million in net inflows on Wednesday, signaling strong demand for the second-largest cryptocurrency.
BlackRock’s ETHA led the gains with $164.3 million of new inflows, while Bitwise’s ETHW added $12.3 million and Fidelity’s FETH contributed $1 million. Only 21Shares’ CETH saw outflows, totaling $8 million, with the remaining funds unchanged.
Since last Friday, Ethereum ETFs have recorded a total of $197.6 million in exits, indicating that inflows remain selective but strong for certain funds.
Flash Crash and Macro Events Trigger Volatility
The market turmoil began late Friday after Donald Trump posted on Truth Social about 100% tariffs on all Chinese imports, responding to China’s warning to restrict rare earth metal exports, essential for U.S. tech manufacturing.
At its lowest point, Bitcoin plunged 15% toward $100,000, while Ethereum dropped more than 20%, with broader market losses even larger. Cascading liquidations erased at least $20 billion in positions, making it the largest crypto liquidation event in U.S. dollar terms.
Although Bitcoin rebounded to around $115,000 by Monday after Trump’s de-escalation attempt, it has since slipped to roughly $111,357, down 9.2% over the past week. Ethereum has fallen 7.4%, trading near $4,046, as market uncertainty continues.
Liquidity Concerns and Recovery Potential
According to Vetle Lunde, Head of Research at K33, the structural impact from forced selling means market liquidity will likely remain thin as participants recover.
“Historically, such deleveraging phases lead to short-term stagnation and cautious trading, but they also tend to mark exhaustion points, creating fertile ground for longer-term recovery once stability returns,” Lunde said.
Investors remain watchful, balancing risk management with selective opportunities amid volatile conditions.
