Bitcoin and Ethereum ETFs See Over $1.7 Billion in Weekly Outflows, Third Largest in History
The cryptocurrency ETF market has just experienced one of its most significant weeks of capital withdrawal in history. According to data shared by SV, Bitcoin ETFs recorded $1.22 billion in outflows, while Ethereum ETFs saw $507.8 million exit during the same period — a combined total of over $1.7 billion leaving digital asset funds.
Third-Largest Bitcoin ETF Outflow Ever Recorded
The $1.22 billion withdrawn from Bitcoin ETFs marks the third-largest outflow ever since the launch of these funds. Analysts attribute the move to short-term profit-taking, renewed macroeconomic pressure, and the recent strengthening of the U.S. dollar.
Institutional investors have been trimming exposure as global risk sentiment softens amid cautious signals from the Federal Reserve, which has hinted that interest rates may remain elevated longer than markets expected.
Ethereum ETFs Also Face Major Withdrawals
Ethereum ETFs followed a similar pattern, logging $507.8 million in weekly outflows — also ranking in the top three largest in history for the asset.
Despite strong fundamental momentum within the Ethereum ecosystem, traders appear to be reallocating capital to cash or stable assets in the face of broader market volatility. Analysts suggest that a combination of ETF rotation, liquidity constraints, and risk-off positioning contributed to the synchronized drawdown.
Institutional Sentiment Turns Defensive
After months of steady inflows into both Bitcoin and Ethereum ETFs, the sharp outflows signal a temporary cooling in institutional appetite.
Market strategists note that while ETFs have been instrumental in bringing regulated access to crypto exposure, they remain sensitive to macro cycles — particularly shifts in interest rates, liquidity, and dollar strength.
A Pause Before the Next Phase?
While the short-term data looks bearish, several experts view this as part of a healthy consolidation phase rather than a structural reversal. Previous ETF outflows of similar magnitude were followed by renewed accumulation once macro conditions stabilized.
If liquidity returns to risk markets and Federal Reserve policy turns more accommodative, ETF inflows could resume — potentially reigniting momentum across both Bitcoin and Ethereum.
For now, the $1.7 billion withdrawal stands as a reminder of how quickly sentiment can shift in crypto’s evolving institutional landscape.
