Institutional investors pulled approximately $965 million from spot bitcoin and ether exchange-traded funds over a two-day period. Trading volume jumped to $3.81 billion for bitcoin funds and $1.92 billion for ether funds as market participants accelerated de-risking strategies, driving bitcoin prices below $82,800 and ether down to $2,485.
The Bottom Line
- Bitcoin and ether exchange-traded funds recorded combined net redemptions of roughly $964.5 million across Wednesday and Thursday.
- Fidelity led bitcoin fund withdrawals with $197.09 million in outflows, while BlackRock drove ether redemptions for an eighth session.
- Alternative digital asset products diverged from the broader retreat, with Franklin’s XRP fund adding $8.17 million and Bitwise’s NEAR ETF, NRR, adding $4.04 million.
Institutional De-Risking Accelerates Across Bitcoin and Ether Funds
The institutional retreat from major digital asset vehicles intensified significantly as trading desks processed heavy liquidations. Bitcoin exchange-traded funds followed Wednesday’s steep declines with another $244.13 million exit on Thursday. Fidelity’s FBTC accounted for the vast majority of that selling pressure, shedding $197.09 million in a single session.
Additional outflows impacted Ark and 21Shares’ ARKB, which lost $20.29 million, alongside Bitwise’s BITB at $17.71 million and Grayscale’s GBTC at $8.20 million. BlackRock’s IBIT slipped by $5.54 million. Franklin’s EZBC stood as the sole buyer during the session, managing to attract $4.71 million in new capital.
Total net assets across the bitcoin funds contracted to $104.91 billion. The shift marks a sharp departure from September’s sustained accumulation phase, leaving the price of bitcoin down more than 4% over a seven-day window.
Ether Redemptions Extend to Eight Sessions
The downward momentum proved even more pronounced in ether-backed investment vehicles. Ether exchange-traded funds lost $72.54 million on Thursday, extending their withdrawal streak to eight sessions.
BlackRock’s ETHA drove the bulk of the redemptions with a $71.12 million exit. Grayscale’s ETHE shed $6.12 million, while 21Shares’ TETH and Vaneck’s ETHV also posted redemptions. Modest inflows from Fidelity’s FETH at $5.50 million and Morgan Stanley’s MSSE at $1.32 million failed to offset the broader exit.
Total net assets for ether funds dropped to $15.64 billion. Concurrently, the spot price of ether experienced a steeper contraction than bitcoin, declining more than 9% over the trailing seven days to trade near $2,485.
Alternative Token Inflows Diverge From Broad Market Retreat
While flagship assets faced heavy liquidation, capital selectively rotated into smaller category alternatives. Franklin’s XRPZ attracted $8.17 million in inflows, lifting total XRP fund net assets to $1.56 billion on $65.44 million in trading volume.
Bitwise’s NEAR ETF, NRR—launched last week—added $4.04 million on Thursday. The fund closed its session with $59.86 million in net assets, representing roughly 1% of the underlying token’s total market capitalization.
Conversely, other alternative products remained under pressure. Grayscale’s ZCSH shed $18.66 million, pushing total Zcash fund net assets down to $655.95 million. HYPE ETFs lost $9.70 million through 21Shares’ THYP, while Solana products registered a fourth consecutive day of withdrawals, losing $3.32 million. While Morgan Stanley’s MSOL and Invesco’s QSOL attracted modest inflows, Bitwise’s BSOL dropped $5.26 million.
Regulatory Shifts Abroad and Infrastructure Expansion
International markets continued to adjust their regulatory frameworks for digital asset investment products. Locally listed crypto ETFs—covering bitcoin and ether initially—were authorized by Thailand’s SEC under new rules that became effective Oct. 16.
In the United States, infrastructure development progressed despite near-term capital outflows. Eligible investors are being provided access to equities including Apple, Nvidia,… as Securitize rolls out Solana-based, 1:1-backed versions of prominent U.S. stocks.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
