Increased uncertainty and volatility in global markets have had a sharp impact on funds traded on cryptocurrency exchanges. Spot Bitcoin and Ethereum exchange-traded funds (ETFs) traded in the US recorded net outflows of approximately $713 million on Tuesday. The data reveals a strengthening of investor risk aversion in the short term.
According to data shared by SoSoValue, eight different spot Bitcoin ETFs experienced a total daily net outflow of $483.4 million. Grayscale’s GBTC fund led the outflows with $160.8 million, followed by Fidelity’s FBTC fund with a $152 million outflow. These figures indicate continued selling pressure following the $395 million outflow recorded last Friday.
The picture was similar on the Ethereum side. Six different spot Ether ETFs experienced a total net outflow of $230 million, marking the end of a five-day streak of positive inflows. BlackRock’s ETHA fund alone saw an outflow of $92.3 million.
These outflows are mirroring the general decline in the cryptocurrency market. After rising above $97,000 last week, Bitcoin’s price has fallen back below $88,000, while Ethereum has also dropped below the $3,000 level.
Analysts attribute this pullback largely to macroeconomic and geopolitical uncertainties. Trade tensions between the US and the European Union over Greenland and panic selling of Japanese government bonds are cited as negatively impacting global liquidity.
BTSE COO Jeff Mei stated that Trump’s tariff threats were met with negativity by the markets, but that expectations remained that these threats could be softened, as in the past. LVRG Research Director Nick Ruck, on the other hand, said that the current outflows reflect not a loss of confidence in the long-term value of crypto, but rather a temporary institutional risk mitigation process related to geopolitical risks.
On the other hand, spot XRP ETFs hit a record high with outflows of $53.3 million, while spot Solana ETFs recorded limited inflows of $3 million. This picture shows selective investor behavior emerging in the crypto market.
*This is not investment advice.
