US Crypto ETFs Post $552M in Net Outflows as Bitcoin Funds Lead Sell-Off

US spot cryptocurrency exchange-traded funds recorded $552.1 million in combined net outflows on Tuesday, the latest sign of institutional caution amid a confluence of macroeconomic and geopolitical uncertainties. Data compiled by SoSoValue and Farside Investors showed Bitcoin ETFs bearing the brunt of the sell-off, while Ethereum products continued a pattern of persistent redemptions.

The $470.7 million net withdrawal from spot Bitcoin ETFs marked the largest single-day outflow since early August and pushed cumulative 30-day flows into negative territory for the first time since the landmark approvals in January 2024. Among the major funds, Grayscale Bitcoin Trust (GBTC) led the exodus with $185.2 million in redemptions, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) at $112.8 million. Even BlackRock’s iShares Bitcoin Trust (IBIT) — long a beacon of consistent inflows — saw $98.4 million depart, its first meaningful outflow in six weeks.

Despite the ETF-level pressure, Bitcoin’s price remained resilient, holding above $72,800 during early Asian trading on Wednesday. Analysts attributed the price stability to robust accumulation in Asia-Pacific derivatives markets, low exchange balances, and growing speculation around a potential U.S. strategic Bitcoin reserve. On-chain metrics reinforced this view: Bitcoin held on exchanges hit a six-year low, while long-term holder supply reached an all-time high of 15.2 million BTC, signaling strong conviction among core investors.

Ethereum spot ETFs, meanwhile, extended a three-day losing streak with $81.4 million in net outflows, bringing weekly losses to $412 million. Grayscale Ethereum Trust (ETHE) accounted for $47.1 million of the decline, followed by BlackRock’s iShares Ethereum Trust (ETHA) at $18.3 million and Fidelity Ethereum Fund (FETH) at $12.6 million.

Market observers pointed to multiple headwinds: uncertainty over staking lock-up mechanics, lower retail engagement compared to Bitcoin, and broader sensitivity to shifting interest rate expectations.The timing of the outflows coincides with a pivotal day in global financial markets.

The Federal Open Market Committee (FOMC) is widely expected to deliver a 25-basis-point rate cut at 2:00 PM ET, with investors parsing every word of Chair Jerome Powell’s press conference for clues on the pace of future easing. Any signal of a pause in the cutting cycle could further dampen risk appetite, including for digital assets.

Adding to the macro backdrop, President Donald Trump and Chinese President Xi Jinping concluded a 100-minute bilateral summit in Beijing on Tuesday, with digital assets reportedly among the topics discussed. While no official readout mentioned cryptocurrency, sources familiar with the talks suggested U.S.-China competition in blockchain technology and stablecoin dominance were raised.

Speculation has intensified around a potential U.S. Bitcoin strategic reserve — an idea floated during the campaign trail — and whether Trump might reference it in post-summit remarks.On the Ethereum network, signs of life emerged despite ETF weakness. Gas fees surged 38% overnight, driven by renewed activity in decentralized finance (DeFi) protocols and non-fungible token (NFT) marketplaces.

The spike suggests that while institutional ETF investors are pulling back, on-chain users and developers remain active — a divergence often seen during transitional market phases.

Looking ahead, volatility is expected to persist through the U.S. presidential election on November 5. Both major candidates have publicly supported cryptocurrency innovation, with Trump pledging to make the U.S. the “crypto capital of the world” and his opponent advocating for clear regulatory frameworks.

The outcome could shape everything from tax policy to SEC oversight of digital assets.Analysts remain divided on the near-term implications of the ETF outflows. “These are classic pre-election jitters,” said Marcus Thielen, head of research at 10x Research. “Institutions are de-risking ahead of Fed and election catalysts. But the on-chain data tells a different story — this isn’t capitulation; it’s rotation.”

For now, the crypto market stands at a crossroads: ETF flows reflect caution, on-chain metrics signal strength, and policy wildcards loom large. Investors will be watching today’s Fed decision, any post-summit crypto commentary, and tomorrow’s ETF flow reports for the next directional cue.

Naorem Mohen

Naorem Mohen offers compelling insights on Artificial Intelligence and Cryptocurrencies. Explore his content on Twitter: @laimacha.