What happened?
U.S. spot Bitcoin and Ethereum ETFs suffered a combined net outflow of $755 million on October 13 after a massive weekend liquidation wiped out over $500 billion and renewed U.S.–China trade tensions rocked markets. Bitcoin ETFs saw roughly $326.5 million in withdrawals while Ether ETFs lost about $428.5 million, reversing earlier inflows and marking multiple days of redemptions. Major products like Grayscale’s GBTC and Fidelity’s FBTC led outflows, while BlackRock’s IBIT was the lone ETF to attract fresh money, leaving ETF assets and crypto prices under pressure.
Who does this affect?
This directly hits institutional and retail investors who use spot ETFs for crypto exposure, as well as the ETF issuers facing large redemptions. Crypto funds, market makers, and active traders also feel the impact through higher trading volumes and forced liquidations. Broader participants — from token holders to pension or endowment allocators watching the space — face increased volatility and potential short-term liquidity strains.
Why does this matter?
The outflows and liquidation event raise short-term downside risk and amplify volatility, which can trigger more selling across crypto and other risk assets. With ETF AUM down and trading volumes elevated, price discovery gets noisier and institutional flows may pause until macro drivers like Powell’s comments or U.S.–China developments settle. At the same time, large opportunistic buyers that stepped in during the dip mean the market is set for choppy swings and rapid rebounds, creating both risk and trading opportunities.