21/10/25

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U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced continued withdrawals on Monday, reflecting ongoing investor risk aversion amidst escalating political and macroeconomic uncertainties. Data from SoSoValue revealed that Bitcoin ETFs recorded net outflows of approximately 40.5 million dollars, marking their fourth consecutive day of net declines. Among the leading providers, BlackRock’s IBIT led the reduction, shedding over 100 million dollars. Conversely, Fidelity’s FBTC and Bitwise’s BITB posted modest inflows of nearly 10 million and 12 million dollars, respectively.

Despite these daily fluctuations, the total net assets in spot Bitcoin ETFs remain substantial, totaling around 150 billion dollars. However, this represents a decline from previous levels and accounts for roughly 6.76% of Bitcoin’s total market capitalization. Similarly, Ethereum ETFs continued their downward trend, losing approximately 146 million dollars on the same day. BlackRock’s ETHA experienced the largest outflow, with over 117 million dollars escaped, while Fidelity’s FETH incurred a loss of about 28 million dollars.

The persistent cash exits coincide with heightened political unrest within the United States. The ongoing government shutdown, now entering its 18th day, has sparked nationwide protests branded as “No Kings,” which criticize the current administration’s approach to governance. Demonstrations have taken place across major cities, with protesters calling for resistance against authoritarian tendencies and reaffirming democratic principles.

Analysts suggest that these political developments are exacerbating risk aversion among investors. The current environment is fostering a “de-risking” phase, characterized by liquidity preservation and reduced appetite for risk assets. This shift has led to diminished trading volumes and thinner bid-ask spreads, especially in innovative financial instruments like ETFs. Experts anticipate that until political stability improves, heightened market volatility will persist, with future movements dependent on the progress of policy clarity and diplomatic resolution. Restoring confidence in institutional governance could potentially reverse recent trends, allowing ETF flows to recover and risk appetite to stabilize.