Crypto
BlockInsider Crypto ETF Report: September’s Worst Week
Crypto ETFs ended September with their weakest week as Bitcoin and Ethereum faced outflows, while ZEC saw its worst week since launch.
BLOCKINSIDERLoadingCrypto ETFs ended September with their weakest week as Bitcoin and Ethereum faced outflows, while ZEC saw its worst week since launch.
The crypto ETF market ended September in its worst week in terms of flows, with every major token seeing sharp outflows. Bitcoin funds lost $148 million on September 30, erasing the week's gains and leaving a $51 million outflow. Ethereum followed closely with $45 million in losses over the last seven days.
Surging Treasury yields, a stalled CLARITY Act, and a hawkish Fed set the backdrop for the exit. Even so, top altcoins stayed positive, while ZEC suffered its worst week since launch.
Bitcoin noted $148 million in outflows, which wiped out the entire week's gain. That left the weekly figure at a $51 million outflow. Ethereum followed closely, posting $45 million in losses over the last seven days.
The September 30 exit also ended a nine-day Bitcoin inflow streak worth roughly $3 billion. Fidelity's FBTC accounted for $125.6 million of that day's outflow.
Ethereum funds also ended a seven-session inflow streak on September 29, as ETH struggled below $2,800.
Macro pressure played a major role. The 10-year Treasury yield briefly hit 5.293%, its highest since June 2007. The 30-year yield touched 5.62%, its highest since 2002. Such yields make risk assets less attractive to ETF investors.
The Fed also raised rates earlier in September for the first time in three years. New York Fed President John Williams called another hike this year a reasonable expectation. Renewed US-Iran tensions and elevated oil prices added to the caution.
Investors also watched the core PCE inflation release, which could decide whether yields ease. Despite the setback, Bitcoin ETFs still ended September with net inflows of about $2.65 billion.
Crypto-specific factors weighed on sentiment too. The CLARITY Act failed a Senate cloture vote on September 15, delaying clearer US market rules. Bitcoin also slipped from near $87,000 to around $83,000, which may have encouraged profit-taking.
Major tokens like XRP and SOL had an interesting outcome in these conditions. Solana's outflows were the highest recorded in over two months as September came to an end. That stood out because SOL ETFs had stayed a relatively bright spot during earlier September selloffs.
However, positive flows earlier in the week saved SOL from a massive drop. This brought its weekly flows to $7 million in inflows.
At the same time, LINK, LTC, and XRP also recorded positive net flows by the end of the week. This divergence may suggest smaller ETF holders reacted less sharply to the yield spike. Their ability to stay positive is notable in a week when Bitcoin and Ethereum funds bled.
XRP had a different reason, with investor resilience saving the day. Instead of selling like other token ETF investors, XRP holders opted to stay put. With no buying and no selling, XRP recorded zero net flows over the last 48 hours. That prevented outflows.
Such flat flows signal strong conviction among XRP holders, who ignored the broader market selloff.
ZEC ETF led the ETF market over the previous two weeks. This week, however, it saw some of the highest outflows. Amounting to $38 million, the outflows marked its worst week since launch.
Uncertain macro and broader market conditions seem to have spooked investors. ZEC recorded $0 net flows between September 23 and September 25, followed by the $38 million exit over the last week.
The swing from market leader to top outflows shows how quickly sentiment can shift. Thus, ZEC appears to be losing steam.
The reversal is stark given how strongly ZEC attracted investors earlier in September. If macro headwinds persist, further outflows could keep pressure on the privacy token.
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