Cryptocurrency investment products expanded their losses on Tuesday, with Bitcoin fund outflows surging more than 300% and Ether losses doubling, both ranking as the second-largest outflows this month.
Spot Bitcoin (BTC) exchange-traded funds (ETFs) saw $523 million in outflows on Tuesday, rising more than fourfold from Monday, according to Farside Investors data.
Ether (ETH) ETFs also recorded major losses, with outflows doubling from $200 million on Monday to $422 million.
Bitcoin and Ether funds have posted three consecutive days of outflows totaling $1.3 billion, coinciding with sharp price corrections of 8.3% and 10.8%, respectively, since last Wednesday, according to CoinGecko.
Fidelity leads outflows with over $400 million
Fidelity Investments led yesterday’s losses with outflows of $247 million from its Fidelity Wise Origin Bitcoin Fund (FBTC) and $156 million from the Fidelity Ethereum Fund (FETH), totaling $403 million in daily withdrawals.
Grayscale Investments also had substantial withdrawals, with the Grayscale Bitcoin Trust ETF (GBTC) reporting $116 million in outflows and the Grayscale Ethereum Trust (ETHE) shedding $122 million.
In contrast, BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced no outflows, and the iShares Ethereum Trust ETF (ETHA) recorded only modest outflows of $6 million.
Fear & Greed Index slips to “Fear”
Although the three-day outflows pale in comparison to the record-breaking inflows for both Bitcoin and Ether funds in 2025, the losses signal a notable shift in investor sentiment amid declining prices.
On Wednesday, the Crypto Fear & Greed Index — a tool tracking the overall sentiment of the crypto market — flipped to “Fear,” registering a score of 44. This change followed a prolonged period of optimism, indicating growing caution among investors.
While many social media commentators have raised concerns about the recent outflows, leading ETF analysts have yet to comment on the losses, suggesting it may be too early to draw conclusions.
Related: SEC pushes back decisions on Truth Social, Solana, XRP crypto ETFs
“A few daily ETF outflows doesn’t mean TradFi [traditional finance] is abandoning 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,” 21Rates adviser Ryan Park wrote in a comment on X.
Senior Bloomberg ETF analyst Eric Balchunas took to X on Monday to highlight that Ether ETFs turned Bitcoin into the “second best” crypto asset in July, as investors were increasingly shifting from Bitcoin ETFs to Ether ETFs.
“I give @fundstrat [Thomas Lee] a lot of credit, along with stablecoin legislation, it gave Ether a good spokesman and its killer app,” Balchunas wrote.
He specifically referred to BitMine, a newly emerged “MicroStrategy of Ether,” which appointed Fundstrat’s Thomas Lee to lead its ETH treasury strategy in June.
Magazine: Solana Seeker review: Is the $500 crypto phone worth it?
Source: https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
