Crypto ETFs See Mixed Flows as Friday Outflows Weigh on Sentiment
Spot BTC ETFs in the U.S. experienced net outflows of $160.1 million on Friday, September 5, according to data compiled by Farside. The withdrawals marked a pause in what had otherwise been a supportive week for BTC products, with CoinShares reporting steady net inflows across the sector. Analysts pointed to profit-taking as a key driver of Friday’s moves, even as BTC prices remained stable near $111,000.
The broader trend still reflects cautious optimism around BTC’s role in institutional portfolios. Many investors appear to be rotating capital later than strong gains earlier in the month, trimming exposure while maintaining core allocations. Market participants suggest that Friday’s pullback may be a natural cooling phase rather than a structural reversal of flows. The resilience in BTC’s price amid the outflows reinforces this view, highlighting demand that remains consistent despite profit-taking pressure.
Ether funds face sharp reversal
Ether ETFs endured a far steeper tradeoff, recording their largest single-day outflow on Friday as part of a five-day slide totaling approximately $952 million. The withdrawals marked a sharp reversal from earlier demand and dragged ETH’s weekly performance into negative territory. Market observers noted that the divergence between BTC and Ether flows highlights shifting investor sentiment, with ETH under pressure while BTC continues to benefit from its status as the leading crypto ETF product.
Some analysts attribute the tradeing in Ether ETFs to broader uncertainty around ETH’s near-term adoption narrative. While ETH remains central to decentralized finance and smart contract ecosystems, institutional investors have shown less conviction in maintaining long positions in comparison to BTC. Friday’s outflows may also reflect concerns about upcoming protocol upgrades and the pace of ETH’s competitive positioning against emerging blockchain networks.
Profit-taking and shifting sentiment
CoinShares’ weekly flows note highlighted profit-taking as a central theme behind Friday’s ETF outflows. Despite the retreat, the overall week still recorded net inflows, underscoring how institutional interest in crypto platform-traded products remains significant. The contrasting flows between BTC and Ether illustrate a selective approach by investors, with capital favoring BTC’s perceived stability while reassessing ETH exposure.
The broader picture suggests that crypto ETFs continue to solidify their role in mainstream markets, even as short-term flows fluctuate. With both BTC and Ether ETFs now widely accessible, investors are demonstrating an active management style—rotating between assets depending on perceived risks and opportunities. Friday’s data reflects that dynamic: BTC consolidating its position as a digital secure haven, and Ether experiencing sharper volatility as questions about its roadmap resurface.
Looking ahead, market watchers expect continued oscillations in ETF flows as traders respond to price action, macroeconomic signals, and regulatory developments. The divergence between BTC and Ether may persist, shaping narratives about which digital asset stands as the more resilient institutional bet. For now, the flows show that while confidence in BTC ETFs is holding, Ether has more work to do in convincing investors of its staying power.
