Crypto ETF Exodus Accelerates as Bitcoin Plunges Below $109K - What’s Next for Digital Assets?
Bitcoin's brutal slide below $109,000 triggers mass ETF outflows as investors scramble for exits.
The Great Unwinding
Digital asset funds hemorrhage billions while traditional finance veterans nod knowingly - another crypto 'correction' proving their skepticism right. Yet beneath the panic, blockchain fundamentals remain unshaken.
Market Mechanics Exposed
Leveraged positions liquidate in cascading fashion, creating the very volatility ETF proponents claimed to mitigate. The irony isn't lost on seasoned traders watching paper hands fold.
Maybe Wall Street's latest attempt to package decentralization was doomed from the start - you can't put a revolutionary asset class in a twentieth-century wrapper and expect different results. The exodus continues, but crypto's core believers know this dance all too well.
ETF Interest Cooling
BlackRock’s IBIT was the only fund to see an inflow yesterday as $78 million entered the product. Its rivals, Fidelity, Bitwise, ARK 21Shares, Franklin, VanEck, and Grayscale all saw outflows from their respective ETFs.
The cooling follows a couple of very strong months for bitcoin ETFs, which have seen total inflows top $57 billion. It’s not all doom and gloom as BlackRock has not seen an outflow day for three weeks, despite the market pullback.
Blackrock’s Bitcoin ETF, $IBIT, bought:
1,900 Bitcoin this week (Mon-Thur)7,500 Bitcoin last week9,100 Bitcoin 2 weeks ago3,750 Bitcoin 3 weeks ago2,225 Bitcoin 4 weeks ago
— HODL15Capital (@HODL15Capital) September 26, 2025
Spot Ether funds were also in the red with a similar outflow of $251 million on Thursday. The total for the week so far, leaving ETH funds, is $547 million as the asset has tanked by double digits in less than a week.
On a brighter note, the Securities and Exchange Commission discussed the tokenization of ETFs in a meeting with issuer VanEck on Thursday.
The agenda included discussing the “implications of tokenization of ETFs and the role of the underlying issuer,” reported Nova Dius president Nate Geraci. ETF tokenization could be very bullish for Ethereum, which is the industry standard for bringing real-world assets on-chain.
Top 10 ETF issuer VanEck met w/ SEC crypto Task Force today…
Look at this agenda.
“Discuss implications of tokenization of ETFs & the role of underlying issuer.”
Hope you’re paying attention. pic.twitter.com/ILm3ihJh3T
— Nate Geraci (@NateGeraci) September 26, 2025
Big Week For ETF News
In related news, the first Ether staking ETF launched this week from REX-Osprey and Bitwise filed for the first Hyperliquid (HYPE) ETF on Thursday.
NEW: @BitwiseInvest files for Hyperliquid ETF. HYPE pic.twitter.com/l3WaXRmo8Z
— James Seyffart (@JSeyff) September 25, 2025
Earlier this week, the Hashdex Nasdaq Crypto Index US ETF was approved under the SEC’s new generic listing standards.
Meanwhile, BlackRock registered the name iShares Bitcoin Premium ETF, filing coming soon. “This is a covered call Bitcoin strategy in order to give BTC some yield,” explained ETF expert Eric Balchunas.
“Given all the other coins about to ETF-ized, it’s notable BlackRock is going another Bitcoin product, imo, signifies they are going to build around BTC and ETH and lay off the rest, at least for now,” he added.
“This makes the horse race for these other coins much more wide open.”
