Bitcoin ETFs See $363 Million Outflow: Biggest Since U.S. Debut as Fed Remains Cautious
- Spot Bitcoin ETFs saw $363M outflow on 9/22/2025, the largest since U.S. launch in 2024, with Fidelity’s FBTC leading redemptions. - Ethereum ETFs lost $79.36M on 9/24, contrasting Bitcoin’s mixed flows amid Fed rate uncertainty and inflation concerns. - Market analysts link outflows to short-term positioning ahead of Fed policy updates, with Bitcoin trading near $113,000 after August peaks. - Institutional repositioning and ETF volatility highlight sensitivity to macroeconomic signals, as $1.07B in cryp
Spot
These withdrawals have coincided with Bitcoin’s struggle to hold key price levels, currently hovering around $113,000 after dropping sharply from its mid-August high of $124,000 On the Node [ 5 ]. Analysts point to cautious investor behavior ahead of Federal Reserve decisions and inflation worries as the main drivers behind the sell-off. The Fed’s latest 25-basis-point rate reduction, lowering the benchmark to 4.00%–4.25%, was described as a “risk management” step rather than a signal for aggressive easing, dampening hopes for more rate cuts in 2025 Farside Investors [ 3 ]. This has increased market sensitivity to statements from Fed Chair Jerome Powell, prompting investors to reassess their risk exposure The Financial Analyst [ 6 ].
By September 24, Bitcoin spot ETFs had amassed over $149.74 billion in assets under management, with inflows fluctuating since their SEC approval in January 2024 theMarketperiodical.com [ 2 ]. While these funds had drawn more than $57 billion in net inflows by 2025, the recent withdrawals reflect broader market corrections and shifts in institutional strategies. For instance, BlackRock’s
The differing results between Bitcoin and Ethereum ETFs further reveal institutional preferences. On September 24, Bitcoin ETFs all posted positive inflows, while Ethereum ETFs recorded $79.36 million in outflows, extending their losing streak to three days theMarketperiodical.com [ 2 ]. This divergence may be due to ongoing uncertainty about Ethereum’s regulatory status and competition from other networks. On September 24, Bitcoin ETF trading volumes hit $2.58 billion, compared to $972 million for Ethereum ETFs, highlighting the gap in institutional participation theMarketperiodical.com [ 2 ].
According to market analysts, these outflows are mainly the result of short-term repositioning rather than a shift to long-term bearishness. On-chain analyst Ali Martinez noted that the selling could reverse if upcoming inflation data meets expectations, especially with the Personal Consumption Expenditures (PCE) report on the horizon Farside Investors [ 3 ]. Meanwhile, technical indicators for Bitcoin, such as a bearish MACD and an RSI below 50, point to continued downward pressure, though institutional buying and ETF demand offer some macroeconomic support On the Node [ 5 ].
The ETF outflows are happening against a backdrop of broader crypto market instability, with $1.6 billion in liquidations reported on September 21 and over $500 million in Ethereum positions erased The Motley Fool [ 1 ]. Despite these headwinds, institutional ownership of Bitcoin remains strong, with 145 companies holding Bitcoin on their balance sheets. However, a quarter of these firms now have market capitalizations lower than their crypto holdings, raising concerns about the long-term viability of the corporate treasury approach The Motley Fool [ 1 ].
As the market navigates this turbulent period, key factors to watch include the Fed’s policy direction, regulatory changes, and Bitcoin’s ability to reclaim important resistance levels. For now, the $363 million outflow highlights how sensitive spot Bitcoin ETFs are to macroeconomic trends and institutional sentiment, with further volatility likely as traders wait for more clarity on monetary policy easing The Motley Fool [ 1 ].
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.
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