US spot Bitcoin and Ethereum exchange-traded funds (ETFs) continued their decline on Monday, experiencing another day of withdrawals as investor sentiment remained shaky amidst rising political and macroeconomic challenges.
According to data from SoSoValue, spot Bitcoin (BTC) ETFs faced $40.47 million in net outflows on Monday, marking their fourth consecutive day of withdrawals. BlackRock’s IBIT was the hardest hit, losing $100.65 million, while Fidelity’s FBTC and Bitwise’s BITB saw inflows of $9.67 million and $12.05 million, respectively.
The total net inflow for spot Bitcoin ETFs has now accumulated to $61.50 billion, while total net assets have decreased to $149.66 billion, representing roughly 6.76% of Bitcoin’s market cap.
Spot Ether (ETH) ETFs followed a similar trend, recording $145.68 million in daily net outflows, their third consecutive session of losses. BlackRock’s ETHA experienced the largest single-day withdrawal at $117.86 million, with Fidelity’s FETH losing $27.82 million.
Related: Bitcoin ETFs shed $1.2B in red week, but Schwab remains bullish
“No Kings” protests sweep the US
The ongoing outflows occur amid escalating political unrest in the US. On Sunday, as the government shutdown reached its 18th day, nationwide “No Kings” protests criticized the Trump administration for perceived authoritarian tendencies.
Demonstrators in locations from Times Square in New York to Portland and Los Angeles chanted slogans like “Resist Fascism” and “We the People Rule,” according to a report by Politico.
In a note to Cointelegraph, Bitunix analysts stated that the “political turmoil is not just a clash of public sentiment and authority but a test of institutional trust.”
They cautioned that if the shutdown persists, its effects could ripple from liquidity to systemic trust in the US framework. “The market’s next steps may hinge on whether the country’s political institutions can bridge divides amid polarizing views,” they noted.
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, shared with Cointelegraph that the ongoing ETF outflows signify a broader de-risking phase. “Investors are taking profits and holding back new investments; both ETFs are experiencing diminished risk appetite and thinner bid depth throughout the market.”
He added that US political instability has intensified the current cautious atmosphere. “Diminishing trust in stable policy is driving capital toward more defensive strategies,” Liu remarked.
Looking forward, Liu anticipates sustained volatility as markets await a clearer policy trajectory. “A more defined macroeconomic path or a reduction in US political conflicts could bolster confidence, reviving risk appetite and positive ETF flows,” he stated.
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