Ethereum News Today: Investors Pull Back from Ethereum ETFs, Shift to Bitcoin Amid Shutdown Uncertainty

Ethereum ETFs posted significant outflows of $93.60 million on October 23, while Bitcoin ETFs attracted $90.60 million in inflows, according to SoSoValue data. The divergent trends highlight growing caution among investors toward Ethereum amid broader market uncertainty, as the US government shutdown enters its 25th day. The outflows from Ethereum ETFs—led by BlackRock's ETHA, which lost $100.99 million—contrast sharply with Bitcoin's resilience, where Fidelity's FBTC and BlackRock's IBIT gained $57.92 million and $32.68 million, respectively, according to a TradingView article.

The Ethereum outflows coincided with a 5.55% share of the Ethereum market cap being tied to ETF activity, down from 6.78% for Bitcoin. Total Ethereum ETF trading value fell to $1.41 billion, while net assets dipped to $26.39 billion. Meanwhile, Bitcoin ETFs saw their trading value drop to $3.34 billion, though net assets remained at $149.96 billion. Prices for both assets edged higher: Bitcoin rose 0.5% to $111,382.03, while Ethereum gained 0.32% to $3,932.12. However, daily trading volumes declined, with Bitcoin's dropping 12% to $45.07 billion and Ethereum's falling 8.13% to $32.49 billion. The TradingView article reported these figures.

The market dynamics echo patterns seen during May's surge, when Ethereum's supply decline fueled speculation about a potential price rebound. Analysts note that the current outflows may signal a temporary shift in investor sentiment, particularly as 79% of traders surveyed by Myriad expect the government shutdown to persist until November 5, 2025. The shutdown's economic impact remains a wildcard for crypto markets, which have shown mixed correlations with traditional asset classes in recent months, the article noted.

Despite the outflows, both Bitcoin and Ethereum remain in recovery mode, with their market caps expanding from prior sessions. The TradingView article concluded that while institutional adoption of crypto ETFs continues, Ethereum's performance remains more volatile, reflecting ongoing debates about its post-merge valuation and regulatory clarity.