U.S. crypto ETFs endured one of their most volatile weeks of September as policy shocks triggered heavy midweek selling before capital rushed back on Friday. Bitcoin funds finished with a slim $6.21 million inflow, while ether ETFs snapped a four-week winning streak with $140 million in net withdrawals.
Bitcoin ETFs Flip From $426M Outflow to $6M Weekly Inflow
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Key Takeaways
- Bitcoin ETFs erased $426M+ in weekly losses to finish with a $6.21M inflow after Friday’s rebound.
- Ether ETFs lost $140M, snapping a 4-week inflow streak as policy shocks drove sharp rotation.
- This week, investors will watch whether Blackrock-led demand persists as crypto prices recover.
Crypto ETF Buyers Reverse Midweek Selloff
The closing bell told a very different story from the middle of the week.
Bitcoin ETFs entered Friday nursing more than $426 million in weekly redemptions. Hours later, a $433.03 million surge had dragged the category back into positive territory, leaving the five-session total at $6.21 million.
That dramatic recovery captured a week shaped by Washington, the Federal Reserve and rapid changes in institutional positioning.
Monday started strongly with $160.04 million flowing into bitcoin funds. The mood deteriorated on Tuesday as $450.33 million exited following the Senate’s failed cloture vote on the Digital Asset Market Clarity Act.
Wednesday brought another $295.98 million withdrawal as the Fed raised rates by 25 basis points to 3.75%-4%, its first increase since July 2023. Thursday produced a $159.45 million rebound before Friday’s buying completed the turnaround.
Blackrock Leads Bitcoin as Ether Loses its Streak
Blackrock’s IBIT finished the week with $120.66 million in net inflows. Fidelity’s FBTC added $79.9 million, while Morgan Stanley’s MSBT gained $13.2 million. Ark & 21Shares’ ARKB suffered the largest weekly exit at $141.9 million. Grayscale’s GBTC lost $62.3 million.
The improvement from the previous week was substantial. Bitcoin ETFs had lost $462.73 million a week earlier, making the week-over-week swing roughly $469 million.
Bitcoin’s price also recovered sharply late Friday, reclaiming $80,000 before extending its advance after U.S. ETF markets closed.
Ether struggled more. ETFs posted $140 million in weekly net outflows, ending four consecutive positive weeks. Heavy Tuesday and Wednesday withdrawals of $141.47 million and $224.11 million overwhelmed Monday’s $121.02 million inflow.
Friday provided relief with $143.80 million in fresh money, while ether’s price subsequently pushed above $2,700.
ZEC Shines as XRP and HYPE Finish Green
The newer corners of the crypto ETF market delivered a quieter but largely positive week.
ZEC ETFs attracted $98.21 million, helped by $46.56 million on Thursday and another $37.67 million on Friday, all domiciled in the only ZEC ETF for now, Grayscale’s ZCSH. The flows made Zcash one of the week’s clearest institutional growth stories.
XRP ETFs finished with $9.56 million in net inflows. Monday contributed $11.26 million, and Wednesday added $3.50 million, while Thursday’s $5.15 million exit reduced the weekly gain. Investors tracking XRP’s price will now be watching whether that demand continues into the new week.
HYPE ETFs ended the week in positive territory with $3.06 million after recovering from Tuesday’s $3.89 million withdrawal. Solana flows were highly active. The week’s inflows included $11.01 million on Monday and a striking $47.62 million on Friday.
Friday Changes the Tone
The week ultimately looked less like a sustained institutional retreat and more like aggressive repositioning around major policy events.
The Senate setback and Fed hike drove heavy selling in bitcoin and ether. By Friday, buyers were returning quickly.
Prices then advanced further after ETF trading closed. That puts the next session in focus: fresh ETF demand in the new week will show whether institutional allocations are beginning to catch up with the latest crypto price rebound.
