Bitcoin & Ethereum ETFs Lose $1.7B As Institutions Exit

U.S. spot Bitcoin and Ethereum ETFs recorded a sharp reversal in flows last week, with institutional investors pulling out more than $1.7 billion from the market.

According to data from SoSoValue, spot Bitcoin ETFs saw $903 million in net outflows, ending a one-month streak of consistent inflows that had reflected growing institutional confidence in digital assets. However, sentiment shifted as macroeconomic uncertainty intensified, prompting many investors to reduce exposure and adopt defensive strategies.

Data showing the net inflows and outflows of Ethereum ETFs on a daily basis this week. Source: SoSoValue

At the same time, Ethereum ETFs experienced even steeper losses. Nine U.S.-listed spot Ethereum ETFs witnessed combined outflows of $796 million – the largest weekly withdrawal since their launch earlier this year.

The synchronized withdrawals across both Bitcoin and Ethereum reflect a broader cooling of demand for crypto ETFs. These vehicles, once seen as a convenient entry point for institutions, are now being reassessed amid concerns over persistent inflation, slowing global growth, and uncertainty around U.S. monetary policy.

In such an environment, digital assets – long categorized as high-risk – are among the first to be trimmed from portfolios. Institutional allocators are restructuring strategies to reduce risk and preserve capital as losses mount.

Data from CryptoQuant shows Bitcoin treasury companies raising capital through PIPE agreements are under pressure, with share prices trending toward discounted issuance levels. Meanwhile, investor attention has been shifting to newly launched altcoin ETFs such as Solana and XRP, creating competition for Bitcoin and Ethereum funds.

This redirection of flows indicates that while overall risk appetite has weakened, demand for crypto diversification remains active. Institutional investors continue to explore opportunities but are approaching allocations with greater selectivity and caution.

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