Investors Pull $5 Billion Out of Crypto ETFs Before Federal Reserve Policy Announcement
- U.S. Bitcoin and Ethereum spot ETFs lost $5.046B in outflows as investors repositioned ahead of Fed policy updates, reversing recent inflow trends. - Fidelity's FBTC led Bitcoin ETF withdrawals ($75.6M), while BlackRock's IBIT saw minimal inflows, highlighting shifting institutional demand. - Ethereum ETFs fared worse, with FETH and Grayscale's ETH fund losing $99.8M combined, reflecting broader crypto capital rotation. - Analysts link redemptions to profit-taking after Bitcoin's $124K peak and cautious
Yesterday, U.S.
As of September 23, Bitcoin spot ETFs held $147.2 billion in net assets. Fidelity’s FBTC led the outflows with $75.6 million withdrawn, while BlackRock’s IBIT saw a small inflow of $2.5 million. Ethereum ETFs performed even worse, with Fidelity’s FETH seeing $63.4 million in redemptions and Grayscale’s ETH fund losing $36.4 million. Total inflows for Bitcoin ETFs have reached $57.25 billion, accounting for 6.6% of Bitcoin’s market capitalization, while Ethereum ETFs collectively hold $27.5 billion, or 5.45% of ETH’s market value.
These withdrawals point to a broader trend of capital shifting within the crypto sector. In August 2025, Ethereum ETFs attracted $3.9 billion in new investments, fueled by increased institutional interest in Ethereum staking and the growth of its DeFi sector. Conversely, Bitcoin ETFs experienced their first significant outflow in weeks during the same period, indicating a brief slowdown in institutional buying. Experts attribute the recent sell-offs to profit-taking after Bitcoin’s surge to nearly $124,000 in early September and a more cautious approach ahead of key macroeconomic updates.
BlackRock’s Bitcoin and Ethereum ETFs continue to play a central role in the industry, generating more than $260 million in yearly revenue for the firm—$218 million from Bitcoin funds and $42 million from Ethereum. Leon Waidmann of Onchain Foundation observed that crypto ETFs have evolved from being experimental offerings to becoming major revenue sources for established financial institutions. Eric Balchunas from Bloomberg highlighted their structural benefits, such as immediate access, low fees, and regulatory protections, which are especially attractive to institutional clients.
The recent outflows highlight how sensitive ETF investments are to broader economic signals. On September 23, Bitcoin was trading at $113,717, up 0.9% over the previous day but remaining within a tight range. Ethereum dropped 0.4% to $4,173.88, representing a 7.1% decrease for the week. Analysts note that ETF flows and derivatives activity will continue to be important indicators as investors respond to the Federal Reserve’s policy direction and inflation data.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump’s Dispute with the Fed Highlights the Strain Between Political Influence and Central Bank Autonomy
- Trump publicly criticized Fed Chair Powell, threatening to fire him over high rates. - Bessent highlighted tariff cuts on food imports and proposed $2,000 rebate checks to address affordability. - The Fed’s independence faces political pressure as Trump’s economic agenda clashes with monetary policy. - Trump’s rhetoric underscores tensions between presidential authority and central bank autonomy ahead of 2026 midterms.

Bitcoin Leverage Liquidation Emergency: Fluctuations, Systemic Threats, and Routes Toward Stability
- October 2025 crypto liquidation wiped out $19B in perpetual futures, highlighting Bitcoin’s volatility and systemic risks. - Retail panic vs. institutional resilience as ETFs attracted $24B inflows amid retail selloffs. - Regulators focus on digital asset classification amid $73.6B in crypto-collateralized borrowing. - Experts split on recovery, with some forecasting $200K Bitcoin if ETF inflows and Fed cuts continue. - Market recalibration suggests long-term opportunities amid evolving dynamics and risk
Nordic investors look for reliability in 21Shares’ physically-backed cryptocurrency ETPs
- 21Shares AG launched six new physically-backed crypto ETPs on Nasdaq Stockholm, expanding its Nordic offerings to 16 products. - The ETPs provide diversified exposure to major cryptocurrencies and index baskets, eliminating custody risks through full collateralization. - With $8B AUM and a focus on regulatory compliance, 21Shares strengthens its leadership in institutional-grade crypto access across Europe. - The expansion aligns with growing Nordic demand for transparent digital asset solutions amid int
