Crypto ETF Exodus: Investors Flee as Bitcoin & Ethereum Prices Tumble
Wall Street's crypto experiment hits turbulence as ETF outflows accelerate amid market downturn.
The Great Unwinding
Digital asset funds hemorrhage billions as institutional players hit the exit. Bitcoin's slide below key support levels triggers panic selling across the ETF complex.
Ethereum Follows Suit
The second-largest cryptocurrency mirrors Bitcoin's decline, dragging down the entire altcoin ecosystem. ETF managers scramble to maintain liquidity as redemption requests pile up.
Regulatory Headwinds Mount
SEC scrutiny intensifies just as market conditions deteriorate. Some Wall Street veterans quietly whisper 'I told you so' while collecting their traditional finance bonuses.
This temporary setback reveals crypto's growing pains—volatility remains the price of admission for digital asset innovation.
On October 20, both US spot crypto ETFs saw a sharp decline in inflows. According to SoSoValue, Bitcoin ETFs dropped to $40.47 million outflows, while ethereum ETFs reported $145.68 million.
Bitcoin ETF Breakdown
Bitcoin ETFs recorded $40.47 million in outflows led by BlackRock IBIT’s $100.65 million withdrawal. Other than that, five ETFs posted small inflows including VanEck HODL $21.16 million, Bitwise BITB $12.05 million, Invesco BTCO $9.94 million, and Fidelity FBTC $9.67 million.
Smallest inflow of the day was reported by Grayscale BTC of $7.36 million. Overall, the total trading value dropped to $4.87 billion, marking a sharp plunge. Net assets came in at $149.66 billion, representing 6.76% of Bitcoin market capitalization.
Ethereum ETF Breakdown
Ethereum ETFs saw a total outflow of $145.68 million, with only two ETFs posting action. BlackRock ETHA saw $117.86 million in outflows, while Fidelity FETH reported $27.82 million. No inflows were recorded for the day.
The continued outflows in Ethereum ETFs signals a negative market sentiment for the asset. The total trading value reached $2.15 million, slightly lower than the last week. Total net assets recorded $26.83 billion, marking 5.56% of Ethereum market cap.
Market Context
Bitcoin continues to experience a bearish trend as the price drops to $107,759.93. It fell around 3.19% in a day with a 24-hour trading volume of $62.34 billion.
Meanwhile, Ethereum is also facing similar market tension. Its price has dipped around $3,887.54 amid the market volatility. This marks a 4.55% decline from the previous day, as its market capitalization and daily trading volume also decline.
