Crypto funds bleed: Bitcoin and Ether ETFs shed nearly $1B

Cryptocurrency concern products expanded losses connected Tuesday, with Bitcoin money outflows surging much than 300% and Ether losses doubling, some ranking arsenic the second-largest outflows this month.

Spot Bitcoin (BTC) exchange-traded funds (ETFs) saw $523 cardinal successful outflows connected Tuesday, rising much than fourfold from Monday’s, according to Farside Investors data.

Ether (ETH) ETFs besides recorded large losses, with outflows doubling from astir $200 cardinal connected Monday to $422 million.

Bitcoin and Ether funds person posted 3 consecutive days of outflows totaling $1.3 billion, coinciding with crisp terms corrections of 8.3% and 10.8% since past Wednesday, according to CoinGecko.

Fidelity leads outflows with implicit $400 million

Fidelity Investments led yesterday’s losses with outflows of $247 cardinal from its Fidelity Wise Origin Bitcoin Fund (FBTC) and $156 cardinal from the Fidelity Ethereum Fund (FETH), totaling $403 cardinal successful regular withdrawals.

Grayscale Investments besides experienced important withdrawals, with the Grayscale Bitcoin Trust ETF (GBTC) reporting $116 cardinal successful outflows and the Grayscale Ethereum Trust (ETHE) shedding $122 cardinal successful outflows.

Daily Bitcoin and Ether ETF flows since Aug. 13. Source: Farside.co.uk

In contrast, BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced nary outflows, and the iShares Ethereum Trust ETF (ETHA) recorded lone humble outflows of $6 million.

Fear & Greed Index slips to “Fear”

Although the three-day outflows airy successful examination to the record-breaking inflows for some Bitcoin and Ether funds successful 2025, the losses awesome a notable displacement successful capitalist sentiment amid declining prices.

On Wednesday, the Crypto Fear and Greed Index — a instrumentality tracking the wide sentiment of the crypto marketplace — flipped to “Fear,” registering a people of 44. This alteration follows a prolonged play of optimism, indicating increasing caution among investors.

The Crypto Fear & Greed Index flipped to “Fear” connected Wednesday aft a period of “Greed.” Source: Alternative.me

While galore societal media commentators person raised concerns astir the caller outflows, starring ETF analysts person yet to remark connected the losses, suggesting it whitethorn beryllium excessively aboriginal to gully conclusions.

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“A fewer regular ETF outflows doesn’t mean TradFi [traditional finance] is abandoning crypto — that's conscionable folks utilizing a elemental mode to hop connected and disconnected Bitcoin, showing the market’s inactive buzzing and noobs are inactive making mistakes,” 21Rates advisor Ryan Park wrote successful a remark connected X.

Senior Bloomberg ETF expert Eric Balchunas took to X connected Monday to highlight that Ether ETFs turned Bitcoin into “second best” crypto plus successful July, arsenic investors were progressively shifting from Bitcoin ETFs to Ether ETFs.

“I springiness @fundstrat [Thomas Lee] a batch of credit, on with stablecoin legislation, it gave Ether a bully spokesperson and its slayer app,” Balchunas wrote.

He specifically referred to BitMine, a recently emerged “MicroStrategy of Ether,” which appointed Fundstrat’s Thomas Lee to pb its ETH treasury strategy successful June.

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