Bitcoin and Ether ETFs See Nearly $1 Billion in Outflows as Prices Drop
Cryptocurrency investment funds faced heavy redemptions on Tuesday, with spot Bitcoin ETF outflows surging over 300% to $523 million and Ether ETF withdrawals doubling to $422 million. Combined, the two markets have now logged three straight days of outflows totaling $1.3 billion, coinciding with an 8.3% drop in Bitcoin and a 10.8% slide in Ether since last week, according to CoinGecko.
Fidelity Investments led the withdrawals, recording $247 million outflows from its Wise Origin Bitcoin Fund (FBTC) and $156 million from its Ethereum Fund (FETH) — a combined $403 million. Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) also saw significant redemptions of $116 million and $122 million, respectively.
In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) reported no outflows, while its Ethereum Trust (ETHA) saw only a modest $6 million decline.
The wave of redemptions has shifted sentiment across the market. The Crypto Fear & Greed Index fell to “Fear” at 44, after spending much of the past month in “Greed” territory, reflecting growing caution among investors.
Some analysts, however, warn against overreacting. Ryan Park of 21Rates said the data shows investors “using ETFs as an easy on-and-off ramp” rather than abandoning crypto. Bloomberg ETF analyst Eric Balchunas also noted that Ether ETFs have been outperforming Bitcoin ETFs since July, crediting Fundstrat’s Thomas Lee and stablecoin legislation for boosting Ethereum’s narrative.
