Bitcoin and Ethereum ETFs Shed $439M as Markets Stay Cautious

Crypto markets began the week under pressure as both Bitcoin and Ethereum exchange-traded funds (ETFs) recorded sizeable withdrawals. Combined redemptions reached about $439 million on Monday, cutting into the progress that had been made in the prior week. The move reflected investor caution as markets adjusted to the Federal Reserve’s recent interest rate cut and awaited new inflation data.

ETF Outflows Weigh on Bitcoin and Ethereum

Bitcoin ETFs absorbed the bulk of the outflows, losing roughly $363 million. Fidelity’s FBTC carried most of the weight, with $276.7 million leaving the fund. ARK 21Shares’ ARKB followed, reporting $52.3 million in redemptions. VanEck’s HODL shed $9.5 million, while Grayscale’s GBTC registered another $24.6 million.

Ethereum ETFs also experienced selling pressure, though on a smaller scale, with total outflows of about $76 million. Here is how the figures broke down.

• Fidelity’s FETH recorded the largest outflow at $33.1 million.
• While Bitwise’s ETHW saw $22.3 million withdrawn.
• BlackRock’s ETHA also reported $15.1 million in outflows.
• Grayscale’s ETH recorded $5.5 million in outflows.

Despite the significant redemptions, price moves were muted. Bitcoin gained only 0.14% over the past 24 hours. Ethereum edged higher by just 0.03% in the same period.

Analysts Interpret the Moves

Market observers pointed to short-term repositioning as the main reason behind the withdrawals. On-chain analyst Ali Martinez attributed the activity to traders adjusting their exposure after the Fed’s recent decision while awaiting the PCE inflation report later in the week. He suggested flows could turn around quickly if incoming data softens.

Dean Chen, an analyst at Bitunix, interpreted the redemptions as investors securing profits and reducing leverage rather than signalling a lasting market decline. He outlined two possible paths, noting that if ETF inflows turn positive within the next three days, Bitcoin could climb above $113,000 and Ethereum towards $4,200, while continued outflows could push Bitcoin back to $108,000 and Ethereum near $3,900.

Bitcoin Faces Pressure from ETF Outflows and On-Chain Activity

Glassnode, in its weekly report, framed Bitcoin’s recent behaviour within a broader context, noting it followed a typical “buy-the-rumour, sell-the-news” pattern. Prices climbed before the Fed’s policy update but came under pressure afterward, weighed down by weak spot demand, stronger futures selling, and slower ETF inflows. 

The firm said profitability and market activity still provide support but cautioned that without new demand to absorb selling, the market could face further cooling.

These pressures in both the ETF market and broader trading activity were reflected on-chain, according to data from CryptoQuant:

• Short-term holders had begun realising losses, with the SOPR metric dropping below 1, showing many were selling below their purchase price.
• Over 30,000 Bitcoin, worth about $3.39 billion at $113,000 each, moved to exchanges and sold at a loss, though prices stayed near the average cost of short-term holders, a level that often acts as support.
• Selling extended to whales, with new wallets posting $184.6 million in losses and older wallets $26.3 million, showing even large holders were cutting exposure.
• Bitcoin now sits at the short-term holder realised price, where support could trigger a rebound if it holds or accelerate selling if it breaks.

The combination of ETF withdrawals and on-chain selling shows the market under pressure, though not in structural decline. Bitcoin and Ethereum remain at key levels, with near-term direction depending on whether ETF flows stabilise and how upcoming inflation data develops.