Bitcoin exchange-traded funds (ETFs) faced a $333 million setback as ether ETFs recorded their largest one-day outflow ever at $465 million, signaling a significant shift in investor sentiment. Combined, the cryptocurrency ETF market lost nearly $800 million in just one trading session.
Cryptocurrency ETF Sell-Off: Bitcoin and Ether Funds Witness Combined Withdrawals of $798 Million
Investors hit the brakes on cryptocurrency ETFs on Monday, August 4, triggering one of the most impressive sell-offs of the summer. Bitcoin ETFs fell by $333.19 million, while ether ETFs recorded a record $465.06 million in withdrawals, the largest one-day exit since inception. The total of $798 million in outflows reflects a return of caution in the digital asset market.
For bitcoin ETFs, outflows are concentrated in a few large funds. Blackrock's IBIT fund was most affected with a capital withdrawal of $292.21 million, while Fidelity's FBTC lost $40.06 million. Grayscale's GBTC and Valkyrie's BRRR contributed to the outflows with $9.92 million and $9.74 million, respectively.
Bitcoin ETFs 6-Day Inflow/Outflow. Source: Sosovalue
A modest inflow of $18.74 million into Bitwise’s BITB was too small to offset the wave of withdrawals. The total trading volume for BTC ETFs reached $2.50 billion, leaving net assets at $147.96 billion.
Ether ETFs had an even tougher day. Blackrock's ETHA led the exit with $374.97 million withdrawn, followed by Fidelity's FETH with $55.11 million. Grayscale's ETHE and Ether Mini Trust completed the spiral, together losing $34.98 million. Despite strong trading activity at $1.92 billion, net assets fell to $20.47 billion.
These rapid outflows mark a strong reversal after weeks of continuous inflows and raise questions about short-term sentiment in the cryptocurrency market. All eyes are now on whether this sell-off marks a deeper correction or just a short pullback before a rebound.
