Crypto Liquidations Surge as Spot ETFs See Major Outflows

Roughly $706 million in leveraged crypto positions were liquidated over the past 24 hours, with long bets accounting for $456 million and shorts making up more than $249 million, according to Coinglass data. Ethereum led by asset class with $234 million in liquidations, Bitcoin followed with $168 million, and other altcoins totaled about $68 million. Meanwhile, U. S. spot Bitcoin and Ethereum ETFs recorded sharp capital withdrawals of $326 million and $428 million respectively, marking a second straight session of outflows for both.

The wave of forced sell-offs comes amid intensifying volatility across crypto markets, driven by macro uncertainties and amplified leverage. Analysts point to U. S.–China trade tensions and abrupt tariff escalations as triggers that rattled institutional positioning. The ensuing “flight to safety” saw leveraged traders squeezed out, pushing volatility higher.

Ethereum’s dominance in the liquidation mix underscores its exposure to leveraged structures: its liquidations outpaced Bitcoin by roughly 40%. That suggests traders running shorter time horizons or more aggressive leverage in the ETH derivatives market. Some observers interpret this as symptomatic of recent rotations within crypto capital flows, where speculative bets on altcoins become more vulnerable during stressed conditions.

ETF outflows add another layer to the stress narrative. The $326 million pulled from spot Bitcoin ETFs and the $428 million withdrawn from Ethereum ETFs reflect a broader retreat by institutional capital. For Ethereum ETFs, Monday’s $428 million exodus represented the steepest daily outflow in several weeks. Within those redemptions, BlackRock’s ETHA alone led with over $310 million withdrawn.

Those moves reverse inflows seen in prior weeks: Ethereum funds had aggregate positive flows of nearly $488 million in the prior week, while Bitcoin products had also drawn substantial capital. Market analysts caution, however, that the shifts may not signal structural withdrawal from crypto exposure but rather tactical repositioning under duress.

Volatility in derivatives markets has drawn scrutiny to structural stress points. Funding rates, margin requirements, and thin liquidity in some trading venues magnify the impacts of sudden directional moves. Experts suggest that while ETF outflows may exacerbate short-term weakness, sustained pressure will hinge on macro stability.