U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) continued to face pressure on Monday, extending their losing streak amid persistent market uncertainty and political unrest. Investor sentiment remains cautious as the combination of macroeconomic headwinds and ongoing government instability weighs on risk appetite across the cryptocurrency market.
- Bitcoin and Ethereum ETFs recorded another day of net outflows, signaling ongoing investor caution.
- BlackRockโs IBIT saw the largest Bitcoin ETF withdrawal at over $100 million.
- Political unrest in the U.S. and a prolonged government shutdown are amplifying market concerns.
- Analysts warn that confidence in institutional stability may be tested if the shutdown continues.
- Experts expect continued volatility until clearer policy and macroeconomic signals emerge.
According to data from SoSoValue, spot Bitcoin (BTC) ETFs registered $40.47 million in net outflows on Monday, marking a fourth consecutive day of withdrawals. BlackRockโs IBIT led with $100.65 million in outflows, while Fidelityโs FBTC and Bitwiseโs BITB posted modest inflows of $9.67 million and $12.05 million, respectively.
The total cumulative inflows for spot Bitcoin ETFs now stand at $61.50 billion, with overall net assets dipping to $149.66 billionโabout 6.76% of Bitcoinโs market capitalization.
Spot Ether (ETH) ETFs followed a similar pattern, with $145.68 million in daily net outflows, marking their third consecutive session of redemptions. BlackRockโs ETHA saw the largest single-day withdrawal at $117.86 million, followed by Fidelityโs FETH with $27.82 million in outflows.
โNo Kingsโ protests intensify political pressure
The ETF outflows come as political unrest grows across the U.S. On Sunday, during the 18th day of the ongoing government shutdown, nationwide โNo Kingsโ protests erupted, accusing the Trump administration of authoritarian tendencies.
From New Yorkโs Times Square to Portland and Los Angeles, demonstrators chanted โResist Fascismโ and โWe the People Rule,โ according to Politico.
Analysts from Bitunix noted that the โpolitical turmoil is not merely a clash between public sentiment and authority but a stress test of institutional confidence.โ They warned that the longer the shutdown persists, the greater the risk to market liquidity and structural trust in the U.S. system. โThe marketโs next move may depend on whether the nationโs political institutions can restore consensus amid deep division,โ they said.
Investors shift toward de-risking
Vincent Liu, chief investment officer at Kronos Research, said the sustained ETF outflows highlight a broader de-risking phase in the market. โInvestors are locking in profits and stepping back from new exposure. Both Bitcoin and Ethereum ETFs are seeing weaker demand and thinner bid depth across exchanges,โ he explained.
Liu added that U.S. political turbulence is amplifying the cautionary sentiment. โThe erosion of confidence in policy stability is pushing investors toward defensive positions,โ he said.
Looking ahead, Liu expects volatility to remain elevated until clearer policy direction emerges. โA defined macro path or easing political tension could restore confidence, reviving risk appetite and turning ETF flows positive again,โ he concluded.
