Investors Pull $5 Billion Out of Crypto ETFs Before Federal Reserve Policy Announcement
- 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
Yesterday, U.S.
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 Fidelity’s FBTC led the outflows with $75.6 million withdrawn, while BlackRock’s IBIT saw a small inflow of $2.5 million.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.
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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