Crypto ETFs Lost $2.6 Billion Last Week

Investors withdrew a total of $2.6 billion from U.S. bitcoin and ethereum ETFs over the past week, marking one of the largest redemption periods in the history of these funds.

More than $1.9 billion left bitcoin funds and $718.9 million was withdrawn from ethereum funds since October 29, according to data from Farside Investors, which helped exert pressure on the decline in value of the two largest cryptocurrencies in the market.

On Tuesday, bitcoin fell below $100,000 for the first time since May. It is currently trading around $103,000, a 2.6 percent increase from the previous day, but still about 18 percent below the record high of $126,080 from October, according to CoinGecko data.

Ethereum was trading at $3,439, a jump of over 5 percent in 24 hours, although it fell 13 percent over the past week.

Investors have largely moved away from cryptocurrencies and other risky assets since October amid concerns over the escalation of President Donald Trump’s trade war with China, the ongoing government shutdown, low market liquidity, and reduced prospects for a third interest rate cut in the U.S. before the end of the year.

Despite Trump’s pro-crypto rhetoric and policies, bitcoin has suffered shocks, along with tech stocks in recent months, as a result of ongoing macroeconomic uncertainties.

In February, spot bitcoin ETFs experienced their longest and most painful streak of losses, with investors pulling over $2.2 billion during eight consecutive days following the president’s tariff announcements.

Crypto ETFs, approved by the SEC last year, allow traditional investors, and even institutions, to gain exposure to cryptocurrencies through exchange-traded funds.

Financial advisor Ric Edelman, who leads the Digital Asset Financial Advisors Council, expressed an optimistic view, highlighting the massive inflows both categories of funds have generated in their short histories. Bitcoin ETFs had the most successful debut in ETF history after approval in January 2024, and now manage a total of $145.4 billion in assets.

– “Watching dollar flows distorts the picture. Bitcoin ETFs have raised over $100 billion in assets, so while $2 billion in outflows sounds like a lot, it’s only 2 percent, hardly worth mentioning,” said Edelman.