Crypto ETF Flows Turn Mixed as BTC Funds See Modest Gains and ETH Faces Sharp Outflows
The U.S. spot crypto platform-traded fund (ETF) market ended Friday, October 24, 2025, with a mixed performance, as BTC products posted $32.7 million in net inflows and ETH funds recorded $101 million in outflows, according to data compiled by Farside Investors. The contrasting flows underscore a shift in investor sentiment, favoring BTC’s perceived stability over ETH’s uncertain short-term outlook.
BTC ETFs maintain steady inflows
BlackRock’s iShares BTC Trust (IBIT) once again led inflows among spot BTC ETFs, followed by moderate additions to Fidelity’s Wise Origin BTC Fund. Despite some redemptions from smaller issuers, total inflows remained positive for BTC-based products, marking the fifth consecutive day of net investor interest. Analysts suggest this consistent demand reflects confidence in BTC as a long-term store of value and a hedge against inflation, especially amid global market volatility.
Institutional investors appear to be reinforcing their BTC allocations, citing the asset’s relative regulatory clarity compared to other digital assets. Recent macroeconomic data showing steady U.S. inflation and geopolitical tensions in Eastern Europe have further boosted BTC’s narrative as a digital alternative to gold.
ETH ETFs face mounting pressure
In sharp contrast, U.S. spot ETH ETFs saw significant redemptions on Friday, totaling over $101 million in outflows across multiple issuers. Grayscale’s ETH Trust and VanEck’s ETH ETF led the day’s redemptions, contributing to what analysts describe as a “rotation out of ETH exposure.” The trend follows a period of reduced on-chain activity and uncertainty around staking yields amid evolving regulatory scrutiny from the U.S. Securities and platform Commission (SEC).
Market watchers attribute the withdrawals to investors reducing risk ahead of key macroeconomic announcements and potential updates on ETH’s staking classification. The shift also comes as traders pivot toward BTC dominance, which has risen steadily through October, approaching 57% of total crypto market capitalization.
Looking ahead, analysts expect continued volatility in crypto ETF flows as traders react to both macroeconomic factors and ongoing regulatory developments. With the Federal Reserve scheduled to release updated economic projections next week, investor sentiment toward risk assets—including digital currencies—is likely to remain cautious.
Despite near-term uncertainty, BTC’s consistent ETF inflows may act as a stabilizing force for broader digital asset markets. Meanwhile, ETH’s short-term fragileness could present purchaseing opportunities if institutional sentiment improves later than regulatory clarity emerges.
As of now, the ETF data highlights the widening divide between BTC’s status as the market’s institutional cornerstone and ETH’s evolving identity amid shifting narratives in decentralized finance and blockchain innovation. Continued monitoring of ETF flow data will be essential to gauge institutional behavior as the crypto market navigates a pivotal close to October.
