Bitcoin and Ethereum ETFs Plunge to New Lows Amid Prolonged Bearish Trend

Bitcoin and Ethereum exchange-traded funds (ETFs) have hit new lows following a bearish week in the crypto market. The cumulative value of U.S.-based spot Bitcoin and Ethereum ETFs has plunged, marking a rough stretch for the top two cryptocurrencies as their prices decline.

Bitcoin ETFs Face Major Outflows

U.S. spot Bitcoin ETFs saw nearly $170 million in outflows on Friday, bringing the total value of these 12 funds down to $48.24 billion—the lowest since May 1. This marks eight straight trading days of outflows, with some of the largest funds, including Grayscale’s GBTC and Fidelity’s FBTC, contributing to the losses. Grayscale recorded a $53 million outflow, while Fidelity had the biggest hit with $85 million in outflows.

Despite the decline, BlackRock’s IBIT fund remained steady with no inflows or outflows, showing some resilience among the larger players. However, the ongoing negative trend is alarming for investors, signaling a potential shift in market sentiment toward Bitcoin ETFs.

Ethereum ETFs Hit Record Low

Ethereum ETFs have fared even worse, with their total asset value dropping to an all-time low of $6.09 billion after $6 million in outflows. This represents a significant 41% decline from the $10.24 billion in value recorded on the first day of trading.

On Friday, Grayscale’s ETHE saw $10 million in outflows, while BlackRock’s ETHA managed to log $4.7 million in inflows, offering a glimmer of hope amid the broader sell-off. Despite these inflows, Ethereum ETFs have experienced six consecutive days of negative or zero outflows, with September alone logging a total outflow of $91 million.

A Tough Week for Crypto Markets

The price drop in Bitcoin and Ethereum reflects a wider bearish trend in the crypto market, where only three out of the top 50 tokens by market capitalization showed gains. This downward pressure has led to investor concerns, prompting sell-offs and lowering ETF asset values across the board.

The sustained outflows and decline in asset value for Bitcoin and Ethereum ETFs signal a tough period for crypto investors. With both ETFs hitting multi-month and record lows, the bearish price action shows no immediate signs of reversal. Investors are keeping a close eye on market conditions, hoping for a rebound in the coming weeks.