Crypto ETFs Shed $439 Million as Bloomberg Analyst Hypes "Tokens with Benefits"

* Bloomberg Senior ETF Analyst Eric Balchunas sparks debate by likening ETFs to crypto tokens with added advantages. * Crypto ETFs face steep outflows, as investors withdraw $439 million in a single day. On September 24, 2025, Cryptopolitan reported that Bloomberg Senior ETF Analyst Eric Balchunas described exchange-traded funds (ETFs) as “tokens with benefits.” He argued that ETFs combine the features of crypto tokens—such as instant access, low costs, flexibility, and yield—with perks like regulatory protections, anonymity, and consumer support. His statement comes during a record-breaking month for ETF launches, with 74 debuting in 30 days. Balchunas’ comments quickly ignited a heated discussion in the cryptocurrency community. He argued that while decentralization and permissionless systems are critical for Bitcoin, most blockchain applications do not require them as much. Instead, he suggested that many users prioritize security, convenience, and regulatory oversight. According to Balchunas, ETFs offer a more attractive option for “normal people” by blending traditional market safeguards with user-friendly features. Critics within the crypto sector, however, pushed back strongly. They highlighted that ETFs lack core crypto characteristics like decentralization, 24/7 trading, and censorship-resistant peer-to-peer networks. One critic asserted that crypto tokens are built on “permissionless code,” whereas ETFs depend on “custodial compliance.” This distinction raises concerns over the risks associated with centralized custodians, and skeptics also flagged how previous financial crises exposed vulnerabilities in centralized systems. The debate coincides with a turbulent period for crypto ETFs. Bitcoin-linked ETFs experienced outflows of $103.61 million within two days. Fidelity’s FBTC led Bitcoin ETF withdrawals by shedding $75.56 million, followed by Ark 21Shares’ ARKB, which lost $27.85 million. In addition, Ethereum-based ETFs faced even steeper losses, with total outflows reaching $140.75 million. Investors withdrew $63.40 million from Fidelity’s FETH, while Grayscale’s Ether Mini Trust recorded $36.37 million in exits. As a result, combined Bitcoin and Ethereum ETF outflows surpassed $439 million in a single day, which mirrors escalating investor caution. Meanwhile, according to CoinMarketCap, Bitcoin (BTC) was trading at $113,681.35 as of 15:09 UTC on September 24, marking a 0.81% increase over the previous 24 hours. As of 15:08 UTC, Ethereum (ETH) was priced at $4,187.24, reflecting a 0.28% increase in the same period.