The dust from the weekend’s historic crypto meltdown hasn’t settled yet. On Monday, investors pulled hundreds of millions from U.S.-listed Bitcoin and Ethereum exchange-traded funds, marking one of the sharpest reversals since spot ETFs began trading earlier this year.
According to data from Farside Investors, total outflows across the two asset classes reached roughly $755 million in a single day as traders reassessed risk exposure after the market wiped out more than $500 billion in value. The retreat followed panic selling triggered by President Donald Trump’s declaration of 100% tariffs on Chinese imports – an announcement that jolted global markets and sparked a wave of crypto liquidations.
Bitcoin-linked funds saw nearly half of the total outflow, with Grayscale’s GBTC and Bitwise’s BITB suffering the largest redemptions. Most issuers reported negative flows, though BlackRock’s iShares Bitcoin Trust (IBIT) managed to buck the trend, attracting modest inflows of around $60 million.
Ethereum ETFs fared worse. The group recorded over $428 million in withdrawals, led by BlackRock’s ETHA, which endured its second-worst session since inception. Not a single Ether fund saw new inflows during the day, underscoring how cautious institutions have become following the volatility shock.
Vincent Liu, CIO of Kronos Research, said the redemptions were driven more by sentiment than fundamentals. “After a wipeout of that magnitude, traders are waiting for macro clarity before taking fresh positions,” he explained.
Analysts at Presto Research shared a similar outlook, suggesting that Monday’s withdrawals reflected “short-term risk control” rather than a long-term exit from crypto exposure. They expect flows to stabilize once investors gain confidence in broader economic signals.
Despite a brief rebound after Trump softened his stance on tariffs, tensions between Washington and Beijing remain high. On Tuesday, China vowed to “fight to the end” in the trade dispute – a warning that could keep both traditional and digital markets volatile for weeks to come.
