Bitcoin ETFs Drop $1.28B as Ethereum Funds Stay in the Red

A Tough Week for Spot Crypto ETFs

The crypto market experienced a heavy wave of institutional sell-offs during the first full week following the major Binance security incident, which coincided with the US midterm elections. Wall Street's interest in spot crypto funds took a sharp pause as investors pulled significant capital out of both BitcoinBTC+0.28% and EthereumETH+0.10% exchange-traded funds (ETFs).

To understand how these funds work, picture spot ETFs as a bridge connecting traditional finance to digital assets. When investors redeem their ETF shares, fund managers sell the underlying cryptocurrency on the open market, which often puts downward pressure on prices.

Bitcoin ETFs Suffer Heavy $1.28 Billion Weekly Outflows

Spot Bitcoin ETFs experienced their largest net outflows since late June, according to data from SoSoValue. The monthly shift began in late October, when a massive single-day withdrawal of over $640 million pushed the entire month into negative territory, ending October with $515 million in net outflows. This marked the first negative month for Bitcoin funds since June, when investors withdrew $4.51 billion.

As market participants digested the broader economic uncertainty and security news, capital continued to exit the market rapidly through the first week of November.

Breaking Down Bitcoin's Daily Numbers

The daily capital flow for spot Bitcoin ETFs shifted dramatically throughout the week:

• Monday (Nov 2): Investors withdrew another $400 million from the funds.
• Tuesday (Election Day): Outflows continued with $115.56 million leaving the products.
• Wednesday: Buyers returned briefly, pouring $74.57 million into the funds. This influx helped propel Bitcoin's underlying price to a brief high of $81,000.
• Thursday: Sentiment turned negative again, with net withdrawals reaching $430 million.
• Friday: Outflows remained high at $412 million.

Driven by these sustained withdrawals, Bitcoin's spot price fell sharply toward a seven-week low under $75,000 on Friday. By the end of the week, total net outflows reached $1.28 billion—the highest weekly total since the last week of June, which saw nearly $1.8 billion in withdrawals.

Past performance of digital assets or financial products is not a guarantee of future returns. Asset prices can fluctuate rapidly based on market conditions and capital flows.

Ethereum ETFs Extend Negative Streak to Six Weeks

Ethereum spot funds faced even tougher conditions, recording their sixth consecutive week of net redemptions. The altcoin leader plummeted by double digits in October, largely influenced by ETF redemptions.

In October alone, Ethereum ETFs experienced record monthly net withdrawals of $1.61 billion. The funds saw only three positive inflow days throughout the entire month, with each green day bringing in less than $25 million.

Looking at the Ethereum Daily Flow Data

The daily performance for spot Ethereum ETFs during the week painted a consistent picture of selling pressure:

• Monday: Funds lost $139.80 million in net outflows.
• Tuesday: Investors pulled out $85.35 million.
• Wednesday (Nov 4): A brief respite brought $53 million in net inflows.
• Thursday: Outflows resumed with $100 million leaving the funds.
• Friday: The week closed with another $93.19 million in withdrawals.

Every negative day during the week saw higher outflows than Wednesday's single positive day. The week concluded with over $365 million in total net outflows.

Impact on Long-Term Totals and Asset Prices

The relentless selling has noticeably eroded cumulative totals. Ethereum ETF cumulative net inflows dropped from $13.94 billion at the end of September down to $11.92 billion as of November 6.

During this period, Ethereum's spot price dropped below $2,250, marking a 10% decline over the month. While ETF activity remains a key indicator of institutional sentiment, traders monitor market liquidity and macroeconomic events closely, as market sentiment can change quickly in both directions.

To keep track of live prices and market developments, you can check historical charts on Bitkub Market.