Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Investors Pull $5 Billion Out of Crypto ETFs Before Federal Reserve Policy Announcement

Investors Pull $5 Billion Out of Crypto ETFs Before Federal Reserve Policy Announcement

Bitget-RWA2025/09/26 04:16
By:Coin World

- U.S. Bitcoin and Ethereum spot ETFs lost $5.046B in outflows as investors repositioned ahead of Fed policy updates, reversing recent inflow trends. - Fidelity's FBTC led Bitcoin ETF withdrawals ($75.6M), while BlackRock's IBIT saw minimal inflows, highlighting shifting institutional demand. - Ethereum ETFs fared worse, with FETH and Grayscale's ETH fund losing $99.8M combined, reflecting broader crypto capital rotation. - Analysts link redemptions to profit-taking after Bitcoin's $124K peak and cautious

Investors Pull $5 Billion Out of Crypto ETFs Before Federal Reserve Policy Announcement image 0

Yesterday, U.S.

and spot ETFs saw notable net withdrawals, with Bitcoin ETFs seeing $2.534 billion in outflows and Ethereum ETFs losing $2.512 billion, according to SoSoValue. This shift reversed the recent pattern of inflows, signaling changing attitudes among both institutional and retail investors as macroeconomic factors evolve. The withdrawals followed a sharp $439 million outflow on September 22, as investors adjusted their holdings ahead of the Federal Reserve’s upcoming inflation report and policy announcements.

As of September 23, Bitcoin spot ETFs held $147.2 billion in net assets. Fidelity’s FBTC led the outflows with $75.6 million withdrawn, while BlackRock’s IBIT saw a small inflow of $2.5 million. Ethereum ETFs performed even worse, with Fidelity’s FETH seeing $63.4 million in redemptions and Grayscale’s ETH fund losing $36.4 million. Total inflows for Bitcoin ETFs have reached $57.25 billion, accounting for 6.6% of Bitcoin’s market capitalization, while Ethereum ETFs collectively hold $27.5 billion, or 5.45% of ETH’s market value.

These withdrawals point to a broader trend of capital shifting within the crypto sector. In August 2025, Ethereum ETFs attracted $3.9 billion in new investments, fueled by increased institutional interest in Ethereum staking and the growth of its DeFi sector. Conversely, Bitcoin ETFs experienced their first significant outflow in weeks during the same period, indicating a brief slowdown in institutional buying. Experts attribute the recent sell-offs to profit-taking after Bitcoin’s surge to nearly $124,000 in early September and a more cautious approach ahead of key macroeconomic updates.

BlackRock’s Bitcoin and Ethereum ETFs continue to play a central role in the industry, generating more than $260 million in yearly revenue for the firm—$218 million from Bitcoin funds and $42 million from Ethereum. Leon Waidmann of Onchain Foundation observed that crypto ETFs have evolved from being experimental offerings to becoming major revenue sources for established financial institutions. Eric Balchunas from Bloomberg highlighted their structural benefits, such as immediate access, low fees, and regulatory protections, which are especially attractive to institutional clients.

The recent outflows highlight how sensitive ETF investments are to broader economic signals. On September 23, Bitcoin was trading at $113,717, up 0.9% over the previous day but remaining within a tight range. Ethereum dropped 0.4% to $4,173.88, representing a 7.1% decrease for the week. Analysts note that ETF flows and derivatives activity will continue to be important indicators as investors respond to the Federal Reserve’s policy direction and inflation data.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Balancer’s $8 Million Compensation Proposal Sheds Light on Weaknesses in DeFi Security Assessments

- Balancer proposes $8M reimbursement plan for liquidity providers impacted by its $128M exploit, marking first concrete response to 2025's largest DeFi breach. - $28M in stolen assets recovered via white hats and third-parties, with StakeWise separately returning $19.7M in osETH/osGNO to users. - Exploit exploited rounding vulnerabilities in Stable Pools, exposing audit limitations as 11 external reviews failed to detect the sophisticated attack. - Reimbursements will be distributed proportionally via BPT

Bitget-RWA2025/11/28 09:12

BAT Breaks Away from Altcoin Downturn: Privacy Focus Fuels Rapid Growth Beyond Market Rebound

- BAT surged over 100% since October 11, nearing 2025 highs, driven by Brave's 101M+ monthly active users and 42M daily active users. - Brave's ecosystem expansion (search, AI assistant, wallet) boosted BAT's utility as privacy tool and social rewards mechanism. - BAT outperformed altcoins with 53.4% weekly gain, fueled by user-earned ad rewards and direct creator tipping bypassing traditional networks. - On-chain data shows 72.32% 24h transfer increase, but challenges include privacy browser competition a

Bitget-RWA2025/11/28 09:12
BAT Breaks Away from Altcoin Downturn: Privacy Focus Fuels Rapid Growth Beyond Market Rebound

Dogecoin News Today: Meme Coins Achieve Recognition as Institutional Investors and ETFs Drive Market Changes for 2025

- WLFI's acquisition of Solana-based meme coin SPSC triggered a 139.8% price surge, highlighting institutional interest in meme tokens. - Binance's listing of Dank Penguin and BNBHolder boosted their market caps past $5 million, showcasing exchange-driven momentum in meme coin ecosystems. - Dogecoin's ETF debut via Bitwise's BWOW and Grayscale's GDOG signals growing institutional validation, despite mixed initial performance compared to Solana/XRP ETFs. - 2025 could solidify meme coins and altcoin ETFs as

Bitget-RWA2025/11/28 08:52
Dogecoin News Today: Meme Coins Achieve Recognition as Institutional Investors and ETFs Drive Market Changes for 2025

Bitcoin News Today: Bitcoin Whale Bets $84 Million—Sign of Faith or Disaster Looming?

- A Bitcoin whale opened an $84.19M 3x leveraged long on Hyperliquid after securing $10M in profits, amplifying market volatility and liquidity risks. - Other whales added 20x-25x leveraged positions totaling $75M in BTC/ETH, reflecting heightened confidence in short-term price resilience amid December 2025's 3.64% BTC and 3.79% ETH gains. - Analysts debate the rally's sustainability, citing weak Sharpe ratios (-36% Bull-Bear Index), 30% drawdown from peaks, and structural liquidity challenges favoring ran

Bitget-RWA2025/11/28 08:52
Bitcoin News Today: Bitcoin Whale Bets $84 Million—Sign of Faith or Disaster Looming?