Crypto ETFs Snap Inflow Streak With $1.7B Exit

TL;DR Breakdown

Crypto ETFs lost $1.7B last week, snapping a four-week inflow streak.
Bitcoin ETFs bled $903M, led by Fidelity’s FBTC with $300M outflows.
Ethereum ETFs shed $796M, with BlackRock’s ETHA hit hardest; net assets dropped to $26B.

The bullish run for crypto ETFs hit a wall last week. Between Sept. 22 and 26, US spot Bitcoin and Ethereum funds saw combined outflows of $1.7 billion. It snapped a four-week inflow streak and leaving managers reeling from one of the sharpest pullbacks since summer.

Bitcoin ETFs bore the brunt with $903 million in net withdrawals. This includes a $418 million single-day exit on Sept. 26, the largest since August. Data shows that Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the losses with $300 million withdrawn. BlackRock’s iShares Bitcoin Trust (IBIT) shed $37 million and Bitwise’s BITB lost $24 million.

However, Ark 21Shares, Grayscale, and VanEck also reported steady outflows. Not a single Bitcoin fund recorded inflows for the week, even as trading volumes topped $3.9 billion. Net assets across the group fell to $143.6 billion. Bitcoin price has dropped by 4% over the last 7 days. BTC is trading down by 10% from its all-time high (ATH) of above $124K.

Ethereum ETFs Log $796M Outflows

Ethereum ETFs fared little better, with $796 million in outflows across all nine products. BlackRock’s ETHA fund saw nearly $200 million in redemptions in a single session. Fidelity’s FETH lost $74 million. Only Grayscale’s ETHE and 21Shares’ TETH managed small inflows, which barely dented the broader retreat. Net assets for ETH funds ended the week at $26 billion after five straight days of losses. This was the worst streak since early September.

The timing coincided with a 10% weekly drop in ETH. The biggest altcoin slid toward the $4,000 level as on-chain data showed persistent weakness in spot demand. Bitcoin also struggled, dipping below $112,000 at one point. However, analysts see that level as a potential pivot and compared the current setup to gold in the early 2000s. It was the time when the metal marched higher in a stair-step fashion, often pausing for sharp pullbacks before resuming its climb.

Not everyone is convinced. Gold advocate Peter Schiff reignited the long-running gold-versus-Bitcoin debate. He argued that Michael Saylor’s massive BTC treasury bet for Strategy Inc. exposes shareholders to liquidity risk. “Tens of billions in gold can be sold with limited market impact,” he said. “Try that with Bitcoin and you risk triggering a cascade of selling.”

Supporters counter that institutional players can offload positions gradually through over-the-counter channels. But Schiff’s warning underscores the market’s fragile psychology as ETFs amplify both sides of the trade.

BlackRock has yet to pursue a spot Solana ETF despite rivals like Grayscale and Franklin Templeton positioning for one. It dominates Bitcoin ETF flows with more than $80 billion in assets at times. For now, the world’s largest asset manager remains focused on Bitcoin and Ethereum.