Crypto ETFs bleed as BTC crashes to around $90K: can crypto bounce back?

US-listed spot Bitcoin and Ethereum exchange-traded funds continued to bleed capital on Monday, registering a combined $437 million in net outflows as the digital-asset market endured another wave of selling pressure.

Data from Farside investors showed that spot Bitcoin ETFs saw $254.5 million exit the products, while spot Ether ETFs recorded $182.8 million in redemptions.

The withdrawals underscore a sharp deterioration in sentiment as crypto prices extend their month-long decline, erasing Bitcoin’s gains for 2025 and pushing the world’s largest cryptocurrency to its lowest level in seven months.

Bitcoin ETFs face fourth straight day of outflows

Monday marked the fourth consecutive session of net outflows for spot bitcoin ETFs, which have lost nearly $1.9 billion over that period.

Redemptions were led by BlackRock’s IBIT, which saw $145.5 million leave the fund.

Products from Grayscale, Fidelity, Ark & 21Shares, Bitwise, and VanEck also reported sizable withdrawals, continuing a trend that began in late October.

Bitcoin’s retreat below $90,000 during Asian trading hours compounded the pressure.

The token fell as much as 2%, extending a decline from its early-October high above $126,000.

With traders dialling back expectations for a December Federal Reserve rate cut and equities weakening from recent peaks, risk appetite has evaporated.

Crypto assets have been especially vulnerable, suffering from declining liquidity and reduced retail activity.

The broader market has struggled to recover from the major $19 billion liquidation event on October 10, which wiped more than $1 trillion in token market value.

Institutional holders have mostly remained stable, but retail dip-buying has noticeably faded, especially across speculative altcoins.

Ether ETFs register fifth straight day of redemptions

Spot Ethereum ETFs also continued to see steady withdrawals, posting $182.8 million in net outflows.

The selling was driven by $193 million exiting BlackRock’s ETHA, while Fidelity’s FETH lost an additional $3 million.

Some of the pressure was partially offset by roughly $13 million in inflows into Grayscale’s ETHE and ETH products.

Ether ETFs have now recorded five consecutive days of redemptions, with a cumulative $911.4 million leaving the funds during that period.

Crypto market remains under pressure

Bitcoin’s slide below $90,000 intensified concerns that further downside may be imminent.

Market analysts pointed to fading retail demand, a pullback in equities, and persistent macro uncertainty as compounding factors.

Options markets also signalled caution, with traders seeking downside protection at $85,000 and $80,000 strike levels — a positioning pattern consistent with expectations of deeper declines.

Despite the worsening sentiment, some high-profile market observers believe the downturn may be near exhaustion.

In an interview with CNBC, BitMine chairman Tom Lee said he sees signs that a bottom could form “sometime this week.”

Lee attributed the current weakness to the fallout from October’s liquidation event and uncertainty over the Federal Reserve’s December decision.

Bitwise CIO Matt Hougan offered a similarly optimistic view, calling current pricing levels an opportunity for long-term investors.

Hougan said traders remain nervous about economic conditions, premium valuations in AI-linked stocks, and renewed trade-policy risks tied to President Trump.

The post Crypto ETFs bleed as BTC crashes to around $90K: can crypto bounce back? appeared first on Invezz