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

**US Political Crisis Triggers Massive Cryptocurrency ETF Outflows Amid Market Turmoil**

Bitcoin ETFs and cryptocurrency investment products are experiencing significant capital flight as escalating political instability rocks US markets. The widespread "No Kings" protests, coupled with an extended government shutdown, have severely undermined institutional confidence in digital assets, driving risk-averse investors away from crypto markets.

The political turmoil is creating ripple effects across the blockchain ecosystem, with Bitcoin, Ethereum, and other major cryptocurrencies facing downward pressure. Cryptocurrency ETFs, which had previously attracted substantial institutional investment, are now bleeding assets as portfolio managers reduce exposure to volatile digital currencies amid the uncertain regulatory environment.

Market analysts warn that prolonged political division could further damage investor sentiment toward cryptocurrency investments and DeFi protocols. The government shutdown raises concerns about potential regulatory delays affecting crypto ETF approvals and blockchain innovation initiatives.

This institutional exodus from cryptocurrency ETFs highlights the sector's continued sensitivity to macroeconomic and political events, despite Bitcoin's reputation as a hedge against traditional financial instability. Crypto traders and institutional investors are closely monitoring political developments for signs of market stabilization.