Investors turn defensive after $20 billion in weekend liquidations and renewed macroeconomic uncertainty
The U.S. spot Bitcoin and Ethereum ETFs faced heavy withdrawals on Monday, shedding over $755 million in combined outflows as market volatility surged following record weekend liquidations. The sudden shift reflects growing caution among institutional investors as broader macro tensions ripple through global markets.
According to industry data, Bitcoin ETFs recorded total daily outflows of $326 million. The Fidelity Wise Origin Bitcoin Fund saw redemptions worth $93 million, while Grayscale’s Bitcoin Trust lost approximately $145 million. Other funds such as Bitwise Bitcoin ETF and Ark 21Shares Bitcoin ETF also posted sizable declines, while BlackRock’s iShares Bitcoin Trust stood out with $60 million in inflows, signaling selective investor confidence.
Meanwhile, Ethereum ETFs registered $428 million in outflows, led by BlackRock’s iShares Ethereum Trust, which saw redemptions totaling $310 million. The Grayscale Ethereum Trust and Fidelity’s Ethereum Fund followed with smaller but notable losses. Overall, total ETH ETF trading volume reached $2.8 billion for the day, highlighting the heightened market activity amid falling prices.
The sell-off came after Ethereum briefly fell below the $4,000 level, testing key technical supports near $3,850–$3,750 as shown in recent charts. Analysts pointed to heavy selling pressure as investors repositioned portfolios following U.S. policy announcements and rising fears of global trade tensions.
“Investors are staying on the sidelines, waiting for clearer macro direction before re-engaging,” said Vincent Liu, Chief Investment Officer at Kronos Research. “Right now, market sentiment outweighs fundamentals in driving activity.”
Experts note that public companies and ETFs now hold around 12% of Bitcoin’s total supply, underscoring strong institutional presence despite the short-term pullback.
Still, market watchers warn that if Ethereum fails to recover above the $4,100–$4,200 zone, bearish momentum could persist. The next few sessions will likely determine whether this week’s ETF outflows mark a temporary correction or the start of a broader risk-off phase across the crypto sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.