Bitcoin ETFs See Fourth Day of Outflows Amid US Political Unrest

• Bitcoin ETF outflows reached $40.47 million, led by BlackRock’s IBIT at $100.65 million in losses.

• Ethereum ETFs saw $145.68 million in net outflows, with BlackRock’s ETHA losing $117.86 million.

• Cumulative Bitcoin ETF inflows stand at $61.50 billion, representing about 6.76% of Bitcoin’s market cap, per SoSoValue data.

Discover the latest Bitcoin ETF outflows amid US political turmoil and government shutdown. Explore impacts on Ethereum ETFs and investor strategies in this comprehensive analysis. Stay informed with COINOTAG for crypto insights. (152 characters)

What Are the Causes of Recent Bitcoin ETF Outflows?

Bitcoin ETF outflows have intensified due to escalating political and macroeconomic pressures in the US, including widespread “No Kings” protests and an ongoing government shutdown. On Monday, spot Bitcoin ETFs recorded $40.47 million in net outflows, continuing a four-day decline as investors de-risk amid fragile sentiment. This trend highlights broader market aversion, with total net assets now at $149.66 billion, according to data from SoSoValue.

How Are Ethereum ETF Outflows Linked to Political Unrest?

Spot Ethereum ETFs mirrored the Bitcoin trend, posting $145.68 million in net outflows on the same day, their third consecutive session of losses. BlackRock’s ETHA bore the brunt with a $117.86 million withdrawal, while Fidelity’s FETH saw $27.82 million exit. This de-risking aligns with surging political tensions, as “No Kings” demonstrations spread across major US cities like New York, Portland, and Los Angeles, protesting perceived authoritarian shifts under the Trump administration.

Reports from Politico detail how crowds gathered in Times Square, chanting slogans such as “Resist Fascism” and “We the People Rule” on the 18th day of the government shutdown. Analysts from Bitunix emphasize that this turmoil extends beyond public dissent, testing institutional confidence and potentially disrupting market liquidity. “The political division is amplifying risk aversion, with investors pulling back from high-volatility assets like cryptocurrencies,” a Bitunix spokesperson noted in a recent analysis shared with industry observers.

Official data from the US Treasury underscores the shutdown’s economic toll, with federal spending halted and non-essential services paused, contributing to heightened uncertainty. According to the Bureau of Economic Analysis, prolonged disruptions could shave off 0.1% to 0.2% from quarterly GDP growth, indirectly pressuring risk assets. In this environment, ETF flows serve as a barometer of investor trust, with outflows signaling a shift toward safer havens like bonds or cash equivalents.

Spot Bitcoin ETFs see fourth day of outflows. Source: SoSoValue

Despite the outflows, some resilience persists. Fidelity’s FBTC and Bitwise’s BITB bucked the trend with modest inflows of $9.67 million and $12.05 million, respectively, suggesting selective optimism among certain institutional players. However, the overall pattern indicates a cautious market, where political headlines are dominating over traditional crypto catalysts like halvings or adoption milestones.

Vincent Liu, Chief Investment Officer at Kronos Research, provided deeper insights into this phase. In a statement to financial journalists, he described the outflows as part of a “broader de-risking strategy,” where investors lock in profits and avoid new commitments. “The US political turbulence is eroding trust in policy stability, driving capital toward defensive positions,” Liu explained. He forecasts sustained volatility until clearer signals emerge, such as a shutdown resolution or bipartisan consensus.

Looking at historical parallels, similar outflows occurred during the 2018-2019 US-China trade tensions, when Bitcoin ETFs—if they existed then—would likely have faced comparable pressure. Today’s scenario, amplified by social media and real-time protest coverage, accelerates sentiment shifts. Data from the Chicago Board Options Exchange shows implied volatility for Bitcoin futures spiking 15% last week, corroborating the ETF data.

From a regulatory perspective, the SEC’s ongoing scrutiny of crypto products adds another layer. While spot ETFs were approved in early 2024, recent filings for additional products have stalled amid the shutdown, delaying potential inflows. Experts from the CFA Institute warn that such delays could prolong the current outflow cycle, with institutional adoption hanging in the balance.

Frequently Asked Questions

What Impact Do Bitcoin ETF Outflows Have on Overall Crypto Market Cap?

Bitcoin ETF outflows of $40.47 million on Monday contribute to short-term price pressure, potentially reducing Bitcoin’s market dominance from 55% to around 52% if trends persist. However, long-term inflows totaling $61.50 billion demonstrate sustained interest, mitigating broader market cap erosion estimated at 2-3% weekly, based on Chainalysis reports. Investors should monitor for reversal signals like policy resolutions.

Why Are Ethereum ETFs Experiencing Consecutive Outflows Amid US Protests?

Ethereum ETFs are facing consecutive outflows because political protests and the government shutdown are heightening global risk aversion, leading investors to reduce exposure to volatile assets. With $145.68 million exiting on Monday, this reflects a broader flight to safety, similar to patterns seen in equity markets during uncertain times. Expect stabilization once political clarity returns, potentially boosting Ethereum’s staking yields and ecosystem growth.

Key Takeaways

• Political Unrest Drives Outflows: The “No Kings” protests and 18-day government shutdown are key factors in the $40.47 million Bitcoin ETF and $145.68 million Ethereum ETF outflows, underscoring macro influences on crypto.
• Mixed Fund Performance: While BlackRock’s funds led losses, Fidelity and Bitwise saw inflows, highlighting varied institutional strategies amid de-risking.
• Volatility Ahead: Investors should prepare for elevated market swings; watch for shutdown resolutions to potentially reverse flows and restore confidence.

Conclusion

In summary, recent Bitcoin ETF outflows and Ethereum ETF withdrawals, totaling over $186 million on Monday, are deeply intertwined with US political divisions and the protracted government shutdown. Data from SoSoValue and insights from experts like Vincent Liu at Kronos Research illustrate a market in de-risking mode, yet the cumulative $61.50 billion in Bitcoin ETF inflows signals underlying strength. As COINOTAG, we recommend monitoring official announcements from bodies like the SEC for signs of stabilization. Looking forward, resolving these tensions could reignite investor appetite, positioning crypto assets for renewed growth in 2025.

Published by COINOTAG on October 15, 2025. Last updated: October 15, 2025.