Crypto Chaos: Bitcoin and Ethereum ETFs Face Second-Worst Day of 2025
In a surprising twist, the crypto world saw one of its most volatile days this year. On Friday, spot crypto exchange-traded funds (ETFs) faced staggering outflows, with Bitcoin and Ethereum suffering their second-largest daily reversals in 2025. Investors pulled a massive \(812 million from Bitcoin funds, ranking second only to February's \)1.15 billion outflow. Meanwhile, Ethereum ETFs saw $153 million in outflows, breaking a 20-day streak of record inflows.
The Landmark Week and Its Odd End
The ETFStore President, Nate Geraci, deemed it an “odd end” to an otherwise monumental week for cryptocurrencies. This week marked several pivotal regulatory advancements. The US Securities and Exchange Commission (SEC) launched Project Crypto and authorized in-kind redemptions and creations for spot Bitcoin and Ethereum ETFs. This change streamlines the process, allowing ETF shares to be exchanged directly for the underlying crypto assets, reducing transaction costs, and enhancing price accuracy.
Accelerated Filings from Major Exchanges
Cboe was quick to file for formal approval of generic listing standards for crypto ETFs, signaling a new era of accelerated filings. With analyst expectations pointing towards similar moves by NYSE Arca and other major exchanges, the crypto ETF landscape is shifting rapidly. Nasdaq also contributed with its listing-standards proposal, although a synchronized filing among major exchanges remains pending.
SEC’s Bold Steps Towards Crypto Regulation
SEC Chair Paul Atkins took the stage this week, unveiling Project Crypto – a deregulation initiative aimed at modernizing securities rules. His “fit-for-purpose” guidance advocates for clearer definitions of securities in the tokenized market and aims to streamline the creation of regulated crypto products. This bold step could pave the way for more seamless integration of blockchain technology within traditional market frameworks.
Market Response: Bitcoin and Ethereum’s Resilience
Despite the downturn in ETF inflows, both Bitcoin and Ethereum showed robust performance by month’s end. Bitcoin soared past the \(116,000 mark, setting a new monthly high before settling around \)114,000. Similarly, Ethereum marked an impressive finish at \(3,700, revisiting levels unseen since early 2024, albeit dipping slightly to \)3,500 thereafter.
The crypto landscape is undergoing rapid transformation, with regulatory shifts playing a crucial role. As the industry braces for further changes, the resilience of Bitcoin and Ethereum showcases the underlying strength and appeal of these digital assets amid the chaos.
For insights and tips, reach out to Kyle Baird, Weekend Editor at DL News, at [email protected].
According to DL News, these evolving patterns offer intriguing pathways for investors and industry stakeholders alike.
