The U.S. spot Bitcoin and Ethereum ETF market experienced a significant reversal last week, registering over $1.7 billion in combined outflows. This sharp downturn comes after weeks of strong inflows, signaling a shift in investor sentiment as both Bitcoin and Ethereum saw their values decline by more than 8% during the same period of heightened volatility.
Bitcoin ETFs See Substantial Withdrawals
U.S.-listed Spot Bitcoin ETFs alone recorded net withdrawals totaling $903 million last week, effectively ending a month-long streak of positive inflows that had previously indicated growing institutional confidence. Fidelity’s FBTC led this exodus with $330.4 million in redemptions, followed closely by Ark 21Shares’ ARKB. Even BlackRock’s IBIT, typically a top performer, was not immune, shedding $37.3 million, while Bitwise’s BITB also saw $23.8 million in outflows.
Ethereum ETFs Face Heavy Redemptions
The landscape for U.S. spot Ethereum ETFs was similarly challenging, with nine listed funds collectively experiencing $795.6 million in withdrawals for the week ending September 26th. This marked their heaviest week of outflows since their launch. Fidelity’s FETH accounted for the largest portion of these redemptions at $362 million, with BlackRock’s ETHA also seeing substantial outflows of $199.9 million. Grayscale’s ETHE and 21Shares’ TETH were notable exceptions, managing to post modest inflows amidst the broader market retreat.
Glimmer of Hope in Altcoin ETFs
Amidst this prevailing investor caution, attention is now shifting towards altcoin ETFs, with several final deadlines for approval slated for October. Market analysts are dubbing October as a crucial "ETF month," anticipating potential approvals for ETFs tracking major altcoins such as Solana ($SOL), XRP ($XRP), Litecoin ($LTC), and Dogecoin ($DOGE). While these applications don't come from industry giants like Fidelity or BlackRock, the prospective approvals could introduce new momentum and diversification into the broader digital asset ETF market in the coming weeks.
