by Coinstrooper Crypto Articles
Quick Take
  • The reversal came after seven consecutive sessions of inflows that had fueled optimism among institutional investors.
  • Bitcoin ETFs recorded $292.27 million in net inflows on September 16.
  • The sudden shift reflects rapid repositioning across major issuers.
  • Fidelity’s FBTC was the hardest hit, posting $116.03 million in daily outflows, despite holding a historical net inflow of $12.56 billion.

What Happened

The reversal came after seven consecutive sessions of inflows that had fueled optimism among institutional investors. The retreat came just one day after U.S. Bitcoin ETFs recorded $292.27 million in net inflows on September 16.

Cumulative net inflows across all products since launch stand at $57.33 billion. Prices tracked lower alongside the shift in flows, with many ETFs ending the day down just over 1%.

Defiance also filed for ETFs built around Bitcoin and Ethereum basis trades, while T-Rex submitted paperwork for a leveraged 2x Orbs ETF.

The filings arrive just as REX-Osprey prepares to launch XRP and Dogecoin ETFs on Thursday through the faster 40 Act structure, which bypasses traditional SEC approval bottlenecks.

Market Context

Bitcoin spot exchange-traded funds (ETFs) in the United States recorded their first significant outflow in over a week, with $51.28 million leaving the market on September 17, according to data from SoSoValue.

Not all funds recorded redemptions, however. BlackRock’s iShares Bitcoin Trust (IBIT) continued to attract capital, pulling in $149.73 million on the day.

The net outflows left the total assets under management for Bitcoin spot ETFs at $152.45 billion, equivalent to 6.62% of Bitcoin’s market capitalization.

Total assets under management for Ether ETFs now stand at $29.72 billion, or 5.47% of Ethereum’s market capitalization. Cumulative inflows are reported at $13.66 billion.

The ETF market has seen renewed institutional interest. A fresh wave of cryptocurrency ETF filings has landed at the U.S. Securities and Exchange Commission (SEC), showing the industry’s push beyond traditional Bitcoin and Ether products.

Why It Matters

Bitcoin Spot ETF Loses Momentum While Ethereum Funds Struggle With Persistent Outflows

The sudden shift reflects rapid repositioning across major issuers. Fidelity’s FBTC was the hardest hit, posting $116.03 million in daily outflows, despite holding a historical net inflow of $12.56 billion.

Details

Grayscale’s flagship GBTC also logged heavy losses, with $62.64 million withdrawn, while Ark and 21Shares’ ARKB shed $32.29 million. Smaller declines were seen at Bitwise’s BITB, which lost $12.58 million.

Grayscale’s lower-fee Bitcoin Mini Trust ($BTC) also posted $22.54 million in inflows, raising its lifetime tally to $1.84 billion.

Ethereum ETFs, meanwhile, remain under pressure. On September 17, Ether products saw $1.89 million in net outflows, extending a streak of withdrawals that has persisted since early September.

Fidelity’s FETH was the largest loser, with $29.19 million in redemptions. Bitwise’s ETHW also saw $9.67 million exit the fund.

Inflows at BlackRock’s ETHA, which added $25.86 million, and smaller gains at Grayscale’s products were not enough to offset the broader weakness.

The figures follow a period of heavy selling earlier this month, when Ether ETFs lost more than $1 billion over six consecutive sessions, including a $446.7 million single-day withdrawal on September 9.

By contrast, Bitcoin ETFs have shown stronger resilience. Earlier in September, funds added more than $1.7 billion in inflows over four days, reversing weakness from late August when Bitcoin ETFs posted their first weekly outflows since June.

Ether funds continue to bleed assets after a brief rebound mid-month, raising questions about institutional conviction in Ethereum compared to Bitcoin.

SEC Approves New Listing Standards, Paving Way for More Crypto Spot ETFs

On Tuesday, five applications were submitted, ranging from Bitwise’s proposed spot Avalanche ETF to Tuttle’s “Income Blast” funds targeting Bonk, Litecoin, and Sui.

ETF Institute co-founder Nate Geraci noted that the industry should brace for “what’s coming over the next few months,” as the number of active applications climbs past 92, with many facing autumn deadlines.

Momentum picked up further on Wednesday when the SEC approved new listing rules for major exchanges, including Nasdaq, Cboe BZX, and NYSE Arca.

The decision allows generic listing standards for commodity-based trust shares, clearing the way for spot ETFs tied to a wider range of cryptocurrencies.