Institutional Sell-Off: Bitcoin and Ethereum ETFs Hit With Heavy Outflows

U.S. spot Bitcoin exchange-traded funds (ETFs) have suffered over $2 billion in redemptions over the past week, marking their second-worst outflow streak on record, according to Farside Investors data.

On Wednesday alone, Bitcoin ETFs saw another $137 million withdrawn – the sixth consecutive day of net outflows. The selloff streak, which began on Oct. 29, has now erased $2.04 billion, with the heaviest day coming on Tuesday when investors pulled $566 million, following previous sessions of $470 million, $488 million, and $191 million in redemptions.

This week’s retreat trails only the February meltdown, when Bitcoin ETFs recorded $3.2 billion in withdrawals within a single week – the largest in their history – driven by massive single-day redemptions of $1.11 billion and $757.8 million.

Ethereum ETFs Also See Heavy Outflows

Spot Ethereum ETFs mirrored the trend, logging $118.5 million in net outflows on Wednesday. BlackRock’s ETHA led withdrawals with $146.6 million, while Bitwise’s ETHW and VanEck’s ETHV held steady. Institutional investors have now pulled nearly $1.2 billion from Ether ETFs over the last six sessions.

Despite the recent downturn, total cumulative inflows for Ethereum ETFs remain above $13.9 billion, underscoring long-term investor participation even as sentiment cools.

Read More:

Solana ETFs Defy the Trend

In contrast, Solana ETFs continue to attract capital, logging $9.7 million in inflows on Wednesday – their seventh consecutive day of positive flows. Since launch, Solana-based funds have now added $294 million in total net inflows, reflecting strong institutional interest in the network’s growing ecosystem.

Macro Uncertainty Looms

Adding to market tension, the U.S. Supreme Court has begun hearings on President Donald Trump’s tariff powers under the International Emergency Economic Powers Act (IEEPA). Analysts at Bitunix warned that a ruling against Trump might not fully remove tariff risks, as other legal mechanisms could maintain trade restrictions.

Should tariffs be reduced, the U.S. tariff rate could drop to 6.5%, offering a modest boost to GDP but potentially intensifying fiscal pressure – a dynamic that could ripple through risk assets, including crypto markets.