Ethereum ETF outflows face BUIDL expansion

US spot Ethereum ETFs recorded $130 million in net outflows on October 14. This movement happened as US spot Bitcoin ETFs recorded $261.4 million in net outflows on the same date. Fidelity’s FBTC saw $152.7 million in withdrawals. BlackRock’s IBIT saw $110.9 million in withdrawals. Bitwise’s BITB recorded $2.2 million in inflows. Bitcoin price dropped 3% to $81,000 from a level near $83,700 before the move. These withdrawals remain small compared to the $54 billion in net inflows Bitcoin ETFs accumulated since January 2024. The Bitcoin ETF market holds between $100 billion and $107 billion in assets as of mid-October.

The BUIDL liquidity and multi-chain scale

The growth of BUIDL shows that institutional capital finds a home in tokenized Treasuries. BlackRock manages the fund with Securitize as the transfer agent and BNY Mellon as the custodian. These partners provide the regulatory framework that qualified investors require. The fund invests 100% of its assets in cash, US Treasury bills, and repurchase agreements. This specific allocation targets a stable $1.00 value for every token. On October 6, 2026, the BUIDL fund held $2.25 billion across nine networks and provided a 30-day APY of 3.60% to its 106 qualified holders through daily dividend distributions of additional tokens directly into whitelisted wallets.

The BUIDL fund operates on Ethereum, Solana, Avalanche, Aptos, Arbitrum, Optimism, Polygon, BNB Chain, and Tempo. Solana is the largest BUIDL network with $953.9 million in value. Avalanche holds $483.3 million. Ethereum holds $443.4 million. Aptos holds $161.8 million. BNB Chain holds $146.7 million. Optimism holds $26.5 million. Tempo holds $17.1 million. Arbitrum holds $8.6 million. Polygon holds $7.5 million.

You already know the basic difference between a spot ETF and a tokenized fund, so I will focus on the flow data. BlackRock provides 24/7/365 instant USDC redemptions via a $100 million smart contract liquidity facility from Circle. This capability differentiates BUIDL from traditional money market funds that have processing delays.

Tokenized Treasury market competition

The tokenized treasury market reached $14.88 billion on October 6, 2026. This market includes 86,301 holders and an average 7-day APY of 3.62%. Circle USYC leads the category with $2.41 billion. Ondo’s U.S. Dollar Yield holds $2.30 billion. BUIDL holds $2.25 billion. The full stablecoin market reached $314.1 billion on October 6, 2026.

The BUIDL fund requires a $5,000,000 minimum investment for individuals or entities. Institutional Class A tranches require a $25,000,000 minimum. Management fees on Ethereum, Polygon, and Avalanche are 0.50%. Fees on Aptos, Arbitrum, Optimism, and Solana are 0.20%.

Divergence between ETHA and BUIDL

Capital returns to crypto assets in a selective way. On September 2, Bitcoin ETFs pulled in $31 million in net value. On that same day, Ethereum ETFs lost $48 million in net value. This event snapped a 12-session inflow streak for Ethereum products. Grayscale’s ETHE led the outflows with $22.64 million on Monday, and this pattern remains a persistent drain on Ethereum ETF liquidity.

The Ethereum ETF market has $6 billion in total net assets. The cumulative total net outflow for Ethereum spot ETFs reached $573 million as of September 7, 2024. BlackRock’s ETHA and Fidelity’s FETH lead the volume for Ethereum products. ETHB attracted $66 million in inflows during a recent week due to its staking component. Will investors eventually favor the yield of BUIDL over the price exposure of ETHA? BUIDL allows investors to hold Treasury yield on their preferred chain through its expansion to seven networks via Wormhole and Securitize.