Bitcoin and Ethereum ETFs Experience Significant Outflows
On September 23, Bitcoin and Ethereum Exchange Trade Funds (ETFs) saw outflows totaling $244 million, marking the second consecutive day of withdrawals by investors. This comes after a sharp $439 million withdrawal the day prior.
ETF flows are being influenced daily by investors reacting to the Federal Reserve’s recent rate cuts and upcoming inflation data in the U.S. For instance, data from SOSOValue indicated that the Bitcoin Spot ETF recorded net flows of $103.6 million on Monday.
Leading the withdrawals was Fidelity’s FBTC, which saw an outflow of $75.6 million, followed by Ark 21 Shares’ ARKB with $27.9 million. In contrast, BlackRock’s IBIT managed to gain a modest $2.5 million, while Invesco’s BTCO noted the day’s highest inflow at $10 million.
Notably, Grayscale’s GBTC and Vaneck’s Hodl, along with Valkyrie’s BRRR, didn’t report any significant net flows. For Ethereum ETFs, the situation was bleaker, with $140.7 million withdrawn in just one day. Fidelity’s Feth accounted for the largest portion of this loss at $63.4 million, trailed by Grayscale’s ETH fund which lost $36.4 million.
Additionally, Bitwise’s ETHW also faced substantial withdrawals amounting to $23.9 million, while Grayscale’s Ethe recorded a $17.1 million redemption. Other smaller funds, including those from Franklin, 21 Shares, and Invesco, showed little to no change.
The day prior, on September 22, Bitcoin products lost $363 million in a single session, primarily driven by Fidelity’s FBTC, which saw a redemption of $276.7 million. Ethereum funds also faced outflows of $76 million, again led by Fidelity, with Bitwise and BlackRock’s Eta also seeing redemptions.
As of September 23, the Bitcoin Spot ETF’s net worth stands at $147.2 billion, making up 6.6% of the total cryptocurrency market cap, whereas cumulative inflows hit $572.5 billion. Ethereum Spot ETF is valued at $27.5 billion, accounting for 5.45% of the total ETH market, with cumulative inflows at $13.7 billion.
Coinshares data shows that these outflows follow a week after Digital Asset products experienced an inflow of around $1.9 billion, which was seen as a response to the Federal Reserve’s first interest rate cuts in 2025. This surge indicated a growing demand for crypto exposure, even amidst a cautious stance from policymakers.
The Bitcoin Fund raised $977 million on weekdays, while Ethereum products garnered $772 million, setting a record with $12.6 billion yearly for ether-backed products. Market trends suggest that investor positioning remains sensitive to large economic signals.
It’s important for analysts to keep an eye on ETF flows and derivative leverage, as these remain key indicators while the market digests the Fed’s policy outlook and forthcoming inflation metrics.
Bitcoin and Ethereum ETFs have had notable success over the years, with BlackRock’s ETFs currently generating over $260 million annually. This indicates that digital asset products have become a primary profit source for the largest asset management firms worldwide. BlackRock is projected to earn $260 million from its Bitcoin and ether ETFs alone, as acceptance on Wall Street reaches new heights.
Leon Waidmann from Onchain Foundation noted that BlackRock’s Bitcoin ETFs account for $218 million of that, while Ethereum products contribute $42 million. Waidmann highlighted that the transformation of Crypto ETFs into a revenue stream is significant compared to traditional financial products.
Experts believe that BlackRock’s achievements may set a precedent for pension and sovereign wealth funds considering digital asset investments. Eric Balchunas, a senior ETF analyst at Bloomberg, discussed the structural advantages of Crypto ETFs, which combine quick access and low costs with regulatory protection and certain privacy benefits.
As for current market conditions, Bitcoin was trading at $113,717, up 0.9% over the last day but fluctuating within the $111,369 to $113,301 range. Ethereum dipped by 0.4% to $4,173.88, marking a 7.1% decrease over the previous week. Despite the short-term volatility, some in the industry see increased institutional demand as a long-term price driver.
Michael Saylor from strategy group CNBC mentioned that firms are purchasing considerably more Bitcoin than what ETFs and companies provide daily, which could sustain upward pressure on prices. However, Citigroup remains cautious, setting a year-end target for Ethereum at $4,300, which is notably lower than its all-time high of $4,953 reached last August.
