US spot Bitcoin and Ethereum exchange-traded funds (ETFs) continued their downward trend on Monday, experiencing further outflows as investor sentiment remained delicate amidst increasing political and macroeconomic instability.
According to data from SoSoValue, spot Bitcoin (BTC) ETFs saw $40.47 million in net outflows on Monday, marking their fourth consecutive day of withdrawals. BlackRock’s IBIT led the declines, losing $100.65 million, while Fidelity’s FBTC and Bitwise’s BITB reported inflows of $9.67 million and $12.05 million, respectively.
The aggregate total net inflow in spot Bitcoin ETFs now stands at $61.50 billion, with total net assets decreasing to $149.66 billion, which is approximately 6.76% of Bitcoin’s market cap.
Spot Ether (ETH) ETFs exhibited a similar trend, logging $145.68 million in daily net outflows, their third straight session in the red. BlackRock’s ETHA experienced the largest single-day withdrawal of $117.86 million, while Fidelity’s FETH lost $27.82 million.
Related: Bitcoin ETFs shed $1.2B in red week, but Schwab remains bullish
“No Kings” protests sweep the US
The continued outflows coincide with escalating political unrest in the US. On Sunday, as the US government shutdown reached its 18th day, nationwide “No Kings” demonstrations accused the Trump administration of veering towards authoritarianism.
From Times Square in New York to Portland and Los Angeles, crowds chanted “Resist Fascism” and “We the People Rule,” according to a report from Politico.
In a note shared with Cointelegraph, Bitunix analysts expressed that the “political turmoil is not merely a clash between public sentiment and authority but a stress test of institutional confidence.”
They cautioned that if the shutdown continues, its repercussions could extend from liquidity issues to structural trust in the US system. “The market’s next move may hinge on whether the nation’s political institutions can rebuild consensus amid deep division,” they stated.
Related: BlackRock launches Bitcoin ETP after UK lifts trading ban
De-risking phase takes over market
Meanwhile, Vincent Liu, chief investment officer at Kronos Research, informed Cointelegraph that the ongoing ETF outflows indicate a wider de-risking phase. “Investors are securing profits and refraining from infusing fresh capital; both ETFs are witnessing a diminished risk appetite and thinner bid depth across the spectrum.”
He added that the US political instability has intensified the cautious sentiment. “The deterioration of trust in policy stability is driving capital towards defensive strategies,” Liu observed.
Looking ahead, Liu anticipates volatility to persist as markets await clearer policy direction. “A more defined macro outlook or alleviation of US political tensions could restore confidence, reviving risk appetite and shifting ETF flows back to positive,” he remarked.
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