Bitcoin and Ethereum ETFs shed $226 million as institutional flows weaken

U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) recorded fresh net outflows across two recent trading sessions, pointing to continued pressure on demand for regulated crypto investment products. Bitcoin ETFs lost $137.94 million on October 23, while Ethereum ETFs recorded $88.58 million in net outflows on October 26, according to data from SoSoValue.

The Bitcoin withdrawals were led by BlackRock’s iShares Bitcoin Trust (IBIT), while Morgan Stanley’s Bitcoin ETF (MSBT) was the only Bitcoin fund to record a net inflow during the October 23 session. In the Ethereum market, BlackRock’s iShares Ethereum Trust (ETHA) recorded more withdrawals than the category’s total, with an inflow into Fidelity’s FETH partly offsetting the decline.

Together, the two reported sessions represent approximately $226.52 million in net outflows. However, because the Bitcoin and Ethereum figures cover different dates, they should not be treated as a same-day combined total.

Bitcoin ETFs lose $137.94 million as IBIT leads withdrawals

U.S. spot Bitcoin ETFs recorded $137.94 million in net outflows on October 23. The withdrawals followed a much larger $635.49 million outflow on October 22, bringing the two-session total to approximately $773.43 million.

BlackRock’s IBIT recorded the largest withdrawal on October 23, losing $110.34 million. Fidelity’s FBTC followed with approximately $31.78 million in net outflows.

Morgan Stanley’s MSBT moved in the opposite direction, attracting $4.19 million in net inflows. It was the only Bitcoin ETF to record positive net flows during the session.

Despite the latest withdrawals, the funds’ cumulative historical net inflows stood at $57.18 billion. IBIT alone had accumulated approximately $66.13 billion in historical net inflows, while MSBT’s cumulative figure reached $775.57 million, according to the reported data.

The difference between daily flows and cumulative inflows is important. A fund can experience short-term redemptions while retaining substantial capital accumulated over its lifetime.

Altcoin Buzz previously examined the relationship between ETF withdrawals, Bitcoin’s price decline, and market liquidations in its report on Bitcoin slipping below $81,000 as ETF outflows and liquidations hit.

Ethereum ETFs record $88.58 million in outflows

U.S. spot Ethereum ETFs recorded $88.58 million in net outflows on October 26, according to SoSoValue data reported on October 27.

BlackRock’s ETHA was the main source of withdrawals, with $104.71 million leaving the fund. Fidelity’s FETH attracted $16.13 million, partly offsetting ETHA’s outflow. The remaining funds did not collectively attract enough capital to prevent the category from ending the session in negative territory.

The latest withdrawal reversed the previous session’s $4.35 million net inflow on October 23, when Ethereum ETFs briefly returned to positive flows.

Ethereum ETFs had approximately $14.07 billion in total net assets on October 26, representing around 4.99% of Ethereum’s market capitalization. Their cumulative historical net inflows stood at $12.63 billion.

The latest session follows a difficult period for Ethereum investment products.

Altcoin Buzz previously reported that Ether ETFs lost $72.54 million as outflows extended to eight days. That earlier report highlighted persistent withdrawals from the category and the role of BlackRock’s ETHA in driving the trend.

The October 26 figures show that withdrawals remain uneven across providers. Fidelity’s positive flow suggests some investors continued to allocate capital to Ethereum exposure, even as the category as a whole experienced net redemptions.

Bitcoin and Ethereum ETF flows show different fund-level trends

Although both categories recorded outflows in their respective reporting sessions, the fund-level data reveals different patterns.

For Bitcoin, IBIT and FBTC accounted for most of the October 23 withdrawals, while MSBT attracted a smaller inflow. For Ethereum, ETHA’s $104.71 million outflow exceeded the category’s $88.58 million net decline because FETH recorded positive flows.

These differences matter because aggregate ETF figures can conceal opposing movements among individual products. Investors may withdraw from one fund while allocating capital to another, meaning the category’s overall result does not describe every investor’s decision.

ETF flows also need to be interpreted alongside asset prices. Total net assets can decline because investors withdraw capital, because the underlying cryptocurrency loses value, or because both occur together. Daily net flows provide a more direct measure of creations and redemptions than changes in total assets alone.

What the latest withdrawals mean for crypto markets

The latest figures indicate that demand for regulated Bitcoin and Ethereum investment products remains uneven. Bitcoin ETFs faced two consecutive sessions of substantial withdrawals on October 22 and 23, while Ethereum ETFs returned to negative territory on October 26 after a brief positive session.

However, these figures do not establish that institutional investors have broadly abandoned either asset. Some funds continued to attract capital, and cumulative historical net inflows for both categories remained substantial.

The next several trading sessions will help determine whether the withdrawals continue or reverse. For Bitcoin, investors will be watching whether IBIT and FBTC return to positive flows and whether MSBT can maintain its inflow trend. For Ethereum, ETHA’s future redemptions and FETH’s ability to attract capital will help clarify whether the latest decline was concentrated in one fund or reflects broader selling.

ETF flows remain a useful measure of demand for regulated crypto exposure, but they are only one part of the market. Bitcoin and Ethereum prices can also respond to macroeconomic developments, derivatives positioning, liquidity, and broader investor sentiment.