Spot Bitcoin, Ethereum ETFs Extend Outflows Amid US Political Turmoil

“No Kings” protests sweep the US

The continued outflows come amid growing political unrest in the US. On Sunday, as the US government shutdown entered its 18th day, nationwide “No Kings” demonstrations accused the Trump administration of sliding toward authoritarianism.

From Times Square in New York to Portland and Los Angeles, crowds chanted “Resist Fascism” and “We the People Rule,” according to a report from Politico.

In a note shared with Cointelegraph, Bitunix analysts said the “political turmoil is not merely a clash between public sentiment and authority but a stress test of institutional confidence.”

They warned that if the shutdown continues, its impact could extend from liquidity to structural trust in the US system. “The market‘s next move may depend on whether the nation’s political institutions can restore consensus amid deep division,” they said.

De-risking phase takes over market

Meanwhile, Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that the persistent ETF outflows reflect a broader de-risking phase. “Investors are locking in profits and sidelining fresh capital; both ETFs are seeing reduced risk appetite and thinner bid depth across the board.”

He added that US political turbulence has deepened the cautionary mood. “The erosion of trust in policy stability is pushing capital toward defensive plays,” Liu noted.

Looking ahead, Liu expects volatility to remain elevated as markets await clearer policy direction. “A more defined macro path or easing US political tension could restore confidence, reviving risk appetite and turning ETF flows back to positive,” he said.