James Richardson
U.S. spot Bitcoin and Ethereum ETFs faced significant withdrawals on Monday, following one of the largest liquidation events in crypto history over the weekend. A total of $755 million exited ETFs in a single day, highlighting ongoing market caution among institutional investors.
Data from SoSoValue revealed that spot Bitcoin ETFs experienced $326.5 million in net outflows. Grayscaleโs GBTC led with $145.4 million withdrawn, while Bitwiseโs BITB saw $115.64 million leave. Other funds from Fidelity, Ark & 21Shares, and VanEck also posted outflows. In contrast, BlackRockโs IBIT attracted $60.36 million in positive flows, standing out amid the broader withdrawals.
Ethereum-focused ETFs suffered heavier losses, with a net outflow of $428.5 million. Seven Ethereum ETFs reported outflows without any inflows, with BlackRockโs ETHA alone losing $310 million, marking its second-worst performance since launch.
Vincent Liu, CIO at Kronos Research, explained, โMondayโs outflows reflect post-liquidation caution. Investors are waiting for clearer macroeconomic signals before deploying capital. Sentiment is driving activity more than fundamentals.โ
Weekend Liquidation Triggers Market Turmoil
The market experienced a historic sell-off over the weekend, erasing over $500 billion in crypto value and pushing prices down roughly 10%. The turmoil was triggered by U.S. President Donald Trumpโs announcement of a 100% tariff on Chinese imports.
However, prices rebounded after Trump moderated his stance on the trade conflict. Analysts expect ETF flows to gradually recover as markets adjust.
Experts Expect Stabilization Amid Volatility
Min Jung, Research Associate at Presto Research, noted that outflows reflect short-term institutional risk management rather than a fundamental sentiment shift. She added that ETF activity is likely to stabilize as the market absorbs recent volatility, though investors remain attentive to U.S.-China trade developments.
Recent reports from China suggest the trade tensions will continue, with authorities prepared to โfight to the endโ, potentially sustaining near-term volatility.
Current Market Response
Crypto prices have reacted to these developments, with Bitcoin falling 2.54% to $112,283 and Ether dropping 3.39% to $4,030, according to PRIMEโs price data. Analysts anticipate that market movements will remain sensitive to trade headlines in the short term.
