Bitcoin, Ether ETF Outflows Surge, Crypto Sentiment Turns to Fear

Bitcoin and Ether ETFs Suffer Major Outflows as Investor Caution Rises

  • Bitcoin and Ether investment funds saw large outflows on Tuesday, marking significant losses.
  • Bitcoin ETFs recorded $523 million in outflows, a major increase from Monday’s figures.
  • Ether ETFs had $422 million in outflows, doubling the previous day’s losses.
  • Fidelity and Grayscale Investments led in withdrawals, while BlackRock reported minimal outflows.
  • The Crypto Fear and Greed Index shifted to “Fear,” reflecting growing investor caution.

Investment funds in major cryptocurrencies experienced substantial outflows on Tuesday as both Bitcoin and Ether funds reported sharp losses. Over $500 million exited spot Bitcoin exchange-traded funds (ETFs), while Ether ETFs faced significant outflows, according to recent data.

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Spot Bitcoin ETFs had $523 million in withdrawals on Tuesday, rising over 300% compared to outflows on Monday, as reported by Farside Investors. Similarly, Ether ETFs saw their outflows double to $422 million after losing about $200 million the previous day. Over the last three days, Bitcoin and Ether funds recorded a total of $1.3 billion in outflows. These losses matched recent price declines of 8.3% for Bitcoin and 10.8% for Ether, based on CoinGecko data.

Fidelity Investments had the largest withdrawals on Tuesday, with $247 million leaving its Wise Origin Bitcoin Fund (FBTC) and $156 million withdrawn from its Ethereum Fund (FETH), bringing total daily outflows to $403 million, according to the same source. Grayscale Investments also reported significant losses, with $116 million leaving its Bitcoin Trust ETF (GBTC) and $122 million from its Ethereum Trust (ETHE). In comparison, BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw zero outflows, and its iShares Ethereum Trust ETF (ETHA) only lost $6 million.

Investor sentiment has shifted, with the Crypto Fear and Greed Index—a tool tracking market mood—falling to a “Fear” level with a score of 44 on Wednesday. This change follows a period of market optimism, indicating increased caution among investors. See the latest index value at Alternative.me.

Some market participants, including 21Rates adviser Ryan Park, noted on social media that recent ETF outflows do not necessarily mean traditional finance is leaving crypto. “That’s just folks using a simple way to hop on and off Bitcoin, showing the market’s still buzzing and noobs are still making mistakes,” Park commented on X.

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Bloomberg ETF analyst Eric Balchunas also remarked on X that July saw Ether ETFs briefly overtake Bitcoin ETFs in investor attention. He credited this to both stablecoin regulation and leadership changes at BitMine, where strategist Thomas Lee joined.

The losses this week remain much smaller compared to the record-setting inflows seen earlier in 2025 for both Bitcoin and Ether funds. Recent withdrawals may reflect short-term caution but have not erased gains seen earlier this year.

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