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Inflows into exchange-traded funds (ETFs) for Bitcoin and Ethereum have turned negative as the market sentiment surrounding the digital assets turns bearish. While Bitcoin ETFs saw $103 million of outflows, Ethereum ETFs witnessed even greater pullback at $140 million. Despite the Fed rate cuts last week, the market optimism is lacking as traders switch to risk-off sentiment.
Bitcoin ETF Flows Flip Negative As Institutional Demand Cools
For the past two consecutive trading sessions, flows into spot Bitcoin ETFs turned negative, eroding nearly $500 million. On Tuesday, September 23, Bitcoin ETFs saw more than $103 million of outflows, with Fidelity’s FBTC contributing the most at $75.6 million. Ark Invest’s ARKB saw the second-largest outflows at $27.9 million.
Blockchain analytics firm Glassnode reported that U.S. Bitcoin spot ETF inflows have slowed following a period of strong demand in September. Recent sessions have even seen mild outflows, signaling a temporary pause in institutional buying. Despite this slowdown, the overall accumulation of Bitcoin through ETFs remains steady. This shows that the long-term outlook stays intact.
This comes as the Bitcoin price has been under strong selling pressure over the past week. The Fed rate cuts have proved to be a sell-the-news event.
Popular crypto analyst Ted Pillows noted that Bitcoin historically tends to bottom in September. He noted that in just two days, $17.5 billion worth of Bitcoin options are set to expire, with a “max pain” level at $107,000.
Historically, BTC has often moved toward the max pain price during large options expirations. Pillows noted that the cryptocurrency could experience further downside before a potential reversal.
Ethereum ETFs Outflows Surge
Along with Bitcoin ETFs, outflows from Ethereum ETFs have been on the rise in the past two days. The net outflows on Tuesday were $140 million with Fidelity’s FETH seeing the largest outflows at $63.4 million. Grayscale’s ETH came second at $36.4 million.
In another major development, the U.S. Securities and Exchange Commission (SEC) has approved a rule change filed by NYSE Arca on September 19, 2025, allowing the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF under the new ‘Generic Listing’ framework.
This change means the funds no longer require case-by-case approvals to operate. Instead, they will trade under the same generic listing standards applied to other commodity-based ETFs. The move simplifies compliance and reduces regulatory friction.
Thus, it gives Grayscale and NYSE Arca greater flexibility in managing the products while aligning Ethereum ETFs with the broader ETF market framework. However, on-chain data shows that Grayscale has recently offloaded $53.8 million in ETH on crypto exchange Coinbase.
Ethereum ETFs Outflows Surge as ETH Price Comes Under Pressure
The recent outflows in spot Ethereum ETFs comes as the ETH price comes under strong selling pressure, dropping under $4,200. Crypto analyst Ted Pillows noted that Ethereum (ETH) recently tested the $4,060 support level for the second time in just three days.
This signals the potential downward pressure. According to Pillows, the next key support lies around $3,800, which he identified as a favorable zone for accumulation.
