Finance

Bitcoin and Ethereum ETFs Bleed $2.6B Amid Trump Trade Tensions: What’s Next for Crypto Investors?

Bitcoin and Ethereum ETFs saw $2.6B outflows, impacting prices due to macroeconomic fears.

November 5, 2025, 6:47 PM

A close-up stack of physical Bitcoin, Ethereum, and Litecoin cryptocurrency coins.

Physical tokens of Bitcoin, Ethereum, and Litecoin are shown stacked on a dark surface. By Marc Bruxelle / Shutterstock.com.

Executive Summary

U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) recorded combined outflows of $2.6 billion over the past week, marking one of the largest redemption periods and exerting downward pressure on crypto prices.

The significant investor pull-back was primarily driven by macroeconomic concerns, including President Trump’s intensified trade war against China, an ongoing government shutdown, and diminishing expectations for a U.S. interest rate cut.

While the $2.6 billion in outflows is substantial, it represents only about 2% of Bitcoin ETFs’ total assets under management, with Bitcoin’s price resilience indicating strong institutional inflows and increasing market maturity.

The Story So Far

The substantial outflows from U.S. spot Bitcoin and Ethereum ETFs, and the subsequent downward pressure on crypto prices, are primarily driven by growing macroeconomic concerns, including intensified trade tensions under President Donald Trump, an ongoing government shutdown, persistent low market liquidity, and diminishing expectations for a U.S. interest rate cut.

Why This Matters

The substantial $2.6 billion outflows from U.S. spot Bitcoin and Ethereum ETFs, primarily fueled by macroeconomic concerns such as President Trump’s escalating trade tensions, highlight the significant sensitivity of crypto markets to global economic instability and risk aversion, directly impacting the prices of these major digital assets. While these redemptions caused short-term price pressure, the fact that they represent a small fraction of total assets under management suggests a growing maturity and underlying institutional resilience within the crypto ETF landscape, indicating potential for continued long-term stability despite episodic volatility.

Who Thinks What?

General investors are withdrawing funds from U.S. spot Bitcoin and Ethereum ETFs due to macroeconomic concerns such as President Donald Trump’s intensified trade war with China, an ongoing government shutdown, and diminishing expectations for interest rate cuts, which has led to significant outflows and downward pressure on crypto prices.

Ric Edelman, head of the Digital Assets Council of Financial Advisors, believes that the $2.6 billion in outflows represents a relatively small portion (2%) of the Bitcoin ETFs’ total assets under management and that the continued resilience of Bitcoin’s price indicates strong institutional inflows and the increasing maturity of the asset class.

U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) have recorded substantial outflows, totaling a combined $2.6 billion over the past week, marking one of the largest redemption periods since their inception. This significant investor pull-back, primarily driven by macroeconomic concerns including escalating trade tensions under President Donald Trump, has exerted downward pressure on the prices of the two largest cryptocurrencies.

Bitcoin and Ethereum Prices React to Outflows

Since October 29, Bitcoin funds saw over $1.9 billion in withdrawals, while Ethereum counterparts experienced $718.9 million in redemptions, according to data from Farside Investors. This trend contributed to Bitcoin’s recent dip below $100,000 for the first time since May, though it has since recovered slightly to trade around $103,428, still down approximately 18% from its October record of $126,080.

Ethereum also faced considerable pressure, plummeting 13% over the past week, despite a recent 5% 24-hour jump to $3,439. The second-largest digital asset by market capitalization continues to struggle to approach its August record high of $4,946.

Macroeconomic Headwinds Drive Investor Caution

Investors have largely shifted away from cryptocurrencies and other risk-on assets amid growing anxieties over global economic stability. Key factors cited include President Trump’s intensified trade war against China, an ongoing government shutdown, persistent low market liquidity, and diminishing expectations for a third U.S. interest rate cut before the end of the year.

Last week’s volatility in crypto and broader markets notably resulted in zero net flows for Ethereum investment products, marking the first time such an equilibrium has occurred since the U.S.-based ETFs received approval last year. Bitcoin also experienced significant shocks alongside tech stocks due to these macro uncertainties.

Expert Offers Perspective on Outflows

Despite President Trump’s generally pro-crypto stance, market sentiment has remained cautious. In February, spot Bitcoin ETFs endured their longest losing streak, with investors withdrawing over $2.2 billion over eight consecutive days following earlier tariff announcements from the president.

Ric Edelman, head of the Digital Assets Council of Financial Advisors, offered a more optimistic view. He emphasized that while $2.6 billion in outflows sounds substantial, it represents only about 2% of the Bitcoin ETFs’ total assets under management, which stand at $145.4 billion since their successful debut in January 2024. Edelman noted that the continued resilience of Bitcoin’s price, despite these outflows, indicates strong institutional inflows and the increasing maturity of the asset class.