US-listed spot BTC and ETH ETFs suffered more than $500 million in net outflows in a single day, with core products under BlackRock (BLK.US) bearing the brunt of redemptions, deepening the capital drain across digital asset investment.
This withdrawal trend was especially severe among BlackRock's large ETFs. According to data provider Farside Investors on US Eastern Time on the 2nd, spot BTC ETFs saw net outflows of $398.6 million, while spot ETH ETFs recorded outflows of $139.7 million, bringing the combined net outflow to $538.3 million.
Notably, just two BlackRock products — the spot BTC ETF IBIT and the spot ETH ETF ETHA — accounted for roughly $543.6 million in net outflows, a figure that underscores the heavy redemption pressure on the leading institution's offerings.
Among all spot BTC ETFs, BlackRock's IBIT posted the largest net outflow, with about $405.3 million withdrawn on the day. Since IBIT's listing, its cumulative net inflow stands at $65.905 billion. By contrast, Fidelity's FBTC logged roughly $6.7 million in net inflows, making it the spot BTC ETF that attracted the most new money that day, with cumulative net inflows of about $10.18 billion.
Because FBTC and MSSE both saw net inflows that day, the combined outflows from BlackRock's two products were actually slightly higher than the total net outflow for the entire market. Although some products drew fresh inflows, those amounts were far too small to offset the scale of redemptions from large products.
In terms of timing, this outflow was not an isolated event. On the 30th of last month, spot BTC ETFs also recorded $643.2 million in net outflows. Although the net outflow on the 2nd of this month narrowed versus the prior trading day, the combined outflows over those two days still reached $1.0418 billion.
Data compiled by Woofun AI shows the situation for spot ETH ETFs is equally grim, with $139.7 million in net outflows on the day, marking six consecutive trading sessions of capital withdrawal.
Among them, BlackRock's ETHA posted about $138.3 million in net outflows, the largest of any product, with cumulative net inflows of $11.731 billion. BlackRock's other ETH ETF, ETHB, also saw about $4.6 million in net outflows. Meanwhile, among spot ETH ETFs, Morgan Stanley (MS.US)'s Ethereum trust product MSSE recorded about $3.2 million in capital inflows, indicating some buying demand.
Spot ETH ETFs had already seen net outflows for five consecutive trading sessions from the 26th to the 30th of last month, and the first trading day of this month continued that trend. After $155.7 million in outflows on the 30th of last month, another $139.7 million flowed out on the 2nd, showing that capital inflows through institutional investment products remain difficult to restore.
Multiple consecutive days of net outflows indicate that institutional investors' willingness to allocate to spot BTC and ETH ETFs is weakening, with products from top managers such as BlackRock facing particularly heavy redemption pressure. Although some products from Fidelity and Morgan Stanley recorded modest inflows, the broader market remains dominated by large-scale capital flight.
If this trend persists, it could weigh on market sentiment and price stability. This marks another display of caution by institutional money after the large outflows at the end of last month, reflecting reduced investor risk appetite for digital asset ETFs in the current market environment.
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