Exchange-traded funds (ETFs) tied to Ethereum ($4.17B AUM) and Bitcoin ($114B AUM) saw significant withdrawals last week, underscoring a turbulent period for crypto investment products. Ethereum ETFs endured a record week of outflows, while Bitcoin ETFs also posted substantial redemptions, reflecting shifting investor sentiment during heightened price volatility.
Why Ethereum ETFs were hit harder
Ethereum ETFs recorded five consecutive days of net outflows, totaling $795.8 million. Thursday alone marked one of the largest single-day withdrawals at $251.2 million. Analysts suggest this wave of exits reflects broader caution driven by market instability.
Bitcoin ETFs also under pressure
Bitcoin ETFs followed a similar trend, logging four days of outflows that added up to $897.6 million for the week. Interestingly, one trading session saw net inflows of $241 million, signaling sporadic investor interest. The larger asset base of Bitcoin ETFs helped cushion the impact compared to Ethereum, though both remain exposed to market swings.
Market response and outlook
Despite sharp declines earlier in the week, both Bitcoin and Ethereum posted modest rebounds, gaining 2.2% and 2.6% respectively in the past 24 hours. Industry advocate Michael Saylor remained bullish, arguing that corporate demand and ETF inflows may soon outpace Bitcoin mining supply, calling BTC “the ideal digital capital for future credit markets.”
The diverging responses of Ethereum and Bitcoin ETFs highlight the complex dynamics investors face in a volatile market. While short-term uncertainty prevails, long-term optimism continues to shape the narrative as market participants assess policy shifts, institutional adoption, and evolving investment strategies.