Crypto Market Faces $400M ETF Outflows as Bitcoin and Ether See Heavy Withdrawals

B. Ali
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The crypto market saw heavy outflows on September 4, with nearly $400 million pulled from bitcoin and ether ETFs. Bitcoin funds lost $227 million, while ether ETFs recorded $167 million in withdrawals, marking the fourth straight day of redemptions for ether.

Despite some inflows into BlackRock’s ETFs, most investors are showing caution, signaling short-term selling pressure and growing risk aversion.

Bitcoin ETFs See Major Withdrawals

Bitcoin ETFs led the decline, with Ark 21Shares’ ARKB losing $125.49 million and Fidelity’s FBTC dropping $117.45 million. Other funds like Bitwise’s BITB (-$66.37M) and Grayscale’s GBTC (-$22.42M) also saw outflows. Smaller losses appeared across Vaneck, Grayscale Mini Trust, Valkyrie, and Franklin ETFs. Only BlackRock’s IBIT attracted $134.82 million, but overall bitcoin ETF assets decreased to $142.30 billion, with $2.69 billion in trading.

Ether ETFs Continue Losing Streak

Ether ETFs also faced heavy withdrawals. Fidelity’s FETH lost $216.68 million, while Bitwise’s ETHW (-$45.66M), Grayscale’s ETHE (-$26.44M), and Vaneck’s ETHV (-$17.22M) followed. BlackRock’s ETHA absorbed $148.80 million, easing some of the losses. Total ether ETF assets decreased to $27.78 billion, with $2.61 billion in trading volume.

Investor Caution and Market Impact

The combined outflows show that investors are cautious, worried about short-term losses and uncertainty in crypto markets. The steady inflows into BlackRock’s ETFs suggest institutions are looking for safer options, while smaller investors are reducing risk by pulling money out.

These large withdrawals can increase price swings, as ETFs may need to sell underlying crypto to meet redemptions. While BlackRock inflows provide some stability, overall liquidity in the market is dropping, and short-term selling pressure remains strong.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.