Institutional Jitters and Macro Uncertainty Drive $660M Crypto ETF Exodus

Bitcoin and Ether ETFs closed the week in red as combined outflows topped $660 million, signaling a shift in institutional sentiment amid a broader crypto market selloff. U.S. Bitcoin spot ETFs recorded a net outflow of $253.4 million on September 25, with BlackRock’s iShares Bitcoin Trust (IBIT) the sole major fund posting inflows of $79.7 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led outflows at $114.8 million, followed by Grayscale’s GBTC (-$42.9 million) and Bitwise’s BITB (-$80.5 million). Ethereum ETFs fared worse, with $251.2 million in outflows for the same period, marking a fourth consecutive day of redemptions. Fidelity’s FETH (-$158.1 million) and Grayscale’s ETHE (-$30.3 million) were the largest contributors to Ethereum’s outflows.

The Bitcoin ETF outflows came as the asset class’s total assets under management (AUM) fell to $144.3 billion, representing 6.64% of Bitcoin’s market capitalization. Historical cumulative inflows stood at $57.2 billion, but recent redemptions have eroded confidence. Ethereum ETFs, meanwhile, saw AUM drop to $25.6 billion, or 5.46% of ETH’s market cap, with cumulative inflows at $13.37 billion. The sustained outflows for both BTC and ETH ETFs reflect macroeconomic uncertainty, including the Federal Reserve’s recent rate cut and anticipation of upcoming inflation data.

Bitcoin’s price dropped to a four-week low of $108,700 on September 25, while Ethereum fell to $3,956, extending a seven-day decline of 12.5%. On-chain analytics firm Glassnode noted that long-term holders had realized over 3.4 million BTC in profits, creating an “exhaustion” effect in the market. Analysts warned of deeper corrections if Bitcoin revisits support levels near $107,500, with stop-loss selling likely to trigger further declines. Ethereum’s technical indicators also showed weakness, with its relative strength index (RSI) hitting 14.5, the most oversold level since June 2025.

Institutional activity highlighted divergent strategies among major ETF providers. BlackRock’s IBIT maintained its dominance in the Bitcoin ETF space, with $84.35 billion in AUM and cumulative inflows of $60.86 billion. In contrast, Fidelity and Grayscale faced significant redemptions, reflecting investor preferences for lower-fee alternatives. For Ethereum, BlackRock’s ETHA remained flat, while Fidelity’s FETH continued to lead outflows. The contrast between Bitcoin and Ethereum ETF performance underscores varying institutional sentiment, with Bitcoin’s universal positive flows on September 24 (a $241 million net inflow) contrasting sharply with Ethereum’s sustained outflows.

The outflows coincided with broader crypto market declines. The global crypto market fell 1.45% in 24 hours, with Bitcoin and Ethereum each dropping over 1.5%. Analysts attributed the sell-off to profit-taking, macroeconomic uncertainty, and seasonal factors, as September has historically been a weak month for crypto markets. Trading volumes for Bitcoin ETFs reached $5.42 billion on September 25, while Ethereum ETF volumes hit $972.04 million. The divergence in institutional engagement—$9.18 billion in Bitcoin ETF volumes versus $4.64 billion for Ethereum—highlighted Bitcoin’s continued dominance in attracting institutional capital despite recent outflows.

Looking ahead, the market faces a critical juncture. If Bitcoin ETF inflows stabilize or reverse, it could signal renewed institutional confidence and support for price recovery. However, persistent outflows may exacerbate bearish momentum, particularly if macroeconomic conditions deteriorate further. For Ethereum, the fourth consecutive day of outflows raises concerns about network competition and regulatory uncertainty, though a rebound above $3,900 could trigger short-term bounces. Analysts emphasized the importance of monitoring on-chain metrics, such as transaction volumes and hash rates, to gauge reversal signals in the coming weeks.