Crypto Fund Outflows Surge Past $1 Billion as Bitcoin ETFs Lose $295 Million
The crypto market saw significant institutional outflows last week as Bitcoin and Ether ETFs lost $520 million in combined net withdrawals. The selling pressure was triggered by the Federal Reserve's first interest-rate increase in three years and the Senate's failed CLARITY Act vote.
On September 16, U.S. spot Bitcoin exchange-traded funds recorded a loss of $295.9 million, with BlackRock's IBIT leading the withdrawals at $144.1 million. Other prominent Bitcoin products, such as ARK Invest and 21Shares' ARKB, also saw significant outflows.
The Ether ETFs experienced an even broader retreat, with net outflows totaling $224.1 million on September 16, following a loss of $142.3 million the previous day. The two-day combined withdrawals from Ether funds reached $366.4 million, while Bitcoin and Ether products together saw investors withdraw approximately $1.11 billion in just two sessions.
The sharp reversal in institutional positioning comes as Bitcoin remains stagnant around $75,000-$76,000, having failed to respond positively to the regulatory and monetary-policy shocks this week. The latest withdrawals reduced cumulative net Bitcoin ETF inflows to approximately $54.64 billion, while Ether ETF inflows fell to about $13.14 billion.