Investor sentiment weakens as spot Bitcoin and Ethereum ETFs experience sharp three-day outflows, signaling market caution amid price corrections.
Bitcoin and Ethereum ETFs See Major Withdrawals
Crypto investment funds faced significant pressure this week, with combined outflows nearing $1 billion from spot Bitcoin and Ether ETFs. On Tuesday alone, Bitcoin ETF outflows surged over 300% to $523 million, while Ethereum ETF outflows doubled to $422 million, according to Farside Investors.
This marks the second-largest daily outflows of the month for both assets and extends a three-day streak of withdrawals totaling $1.3 billion. The selloff mirrors the broader crypto market’s dip, with Bitcoin down 8.3% and Ether dropping 10.8% since last Wednesday, based on CoinGecko data.
Fidelity and Grayscale Lead the Exodus
Among the biggest contributors to the outflows was Fidelity Investments, which saw a combined $403 million withdrawn from its flagship funds:
- $247 million from the Fidelity Wise Origin Bitcoin Fund (FBTC)
- $156 million from the Fidelity Ethereum Fund (FETH)
Grayscale Investments also reported steep losses:
- $116 million in outflows from its Grayscale Bitcoin Trust ETF (GBTC)
- $122 million from the Grayscale Ethereum Trust (ETHE)
In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) reported zero outflows, and its iShares Ethereum Trust (ETHA) saw just $6 million in outflows, reflecting stronger investor confidence or lower sell pressure for those funds.
Investor Sentiment Turns Cautious
The Crypto Fear & Greed Index dropped to “Fear” territory with a score of 44 on Wednesday, indicating a notable shift in sentiment after weeks of market optimism. While the recent outflows remain small compared to the massive inflows earlier in 2025, they suggest growing caution among institutional and retail investors alike.
Some analysts warn not to overreact. 21Rates adviser Ryan Park downplayed the significance of daily ETF exits, stating on X:
“A few daily ETF outflows doesn’t mean TradFi is abandoning crypto — it’s just a convenient way to hop on and off Bitcoin. The market’s still buzzing, and noobs are still making mistakes.”
Ether ETFs Take the Spotlight
Interestingly, the pullback follows a strong July performance for Ether ETFs. Bloomberg ETF analyst Eric Balchunas noted that Ether briefly outperformed Bitcoin during that period, thanks to growing interest in Ethereum-based treasury strategies.
Balchunas credited Fundstrat’s Thomas Lee and pending stablecoin legislation for giving Ether its “killer app.” Lee was recently appointed to lead treasury efforts for BitMine, dubbed the “MicroStrategy of Ether.”
