US political turmoil tests ‘institutional confidence’ as crypto ETFs bleed

US spot Bitcoin and Ethereum ETFs experienced another day of net outflows on Monday, continuing a losing streak amid fragile investor sentiment driven by mounting political and macroeconomic uncertainty. Spot Bitcoin ETFs saw $40.47 million in outflows, led by BlackRock’s IBIT, while spot Ether ETFs recorded $145.68 million in withdrawals, with BlackRock’s ETHA seeing the largest single-day loss. These outflows coincide with growing US political unrest, including ongoing government shutdown issues and nationwide “No Kings” protests against perceived authoritarianism. Analysts suggest this political turmoil acts as a stress test for institutional confidence, warning that a prolonged shutdown could impact liquidity and structural trust. Furthermore, market observers note that the persistent outflows reflect a broader de-risking phase where investors are locking in profits, and the erosion of trust in policy stability is pushing capital toward defensive plays, suggesting volatility will remain high until policy direction becomes clearer.

(Source：Cointelegraph)