Bitcoin and Ether ETFs Face Heavy Outflows as Market Sentiment Shifts 📉💸

Cryptocurrency investment products extended losses on Tuesday, with Bitcoin ETF outflows jumping over 300% and Ether withdrawals doubling, marking the second-largest outflows this month.

Spot Bitcoin ETFs saw $523M in outflows, more than four times Monday’s figure, according to Farside Investors. Ether ETFs followed with $422M in redemptions, up from $200M the day before. In total, Bitcoin and Ether funds have lost $1.3B across three straight days, coinciding with price drops of -8.3% for BTC and -10.8% for ETH, per CoinGecko.

Fidelity and Grayscale Lead Withdrawals

Fidelity recorded the heaviest hit, with $247M leaving FBTC and $156M exiting FETH, totaling $403M. Grayscale also saw significant losses, with GBTC outflows of $116M and ETHE outflows of $122M. By contrast, BlackRock’s IBIT saw zero outflows, while ETHA lost just $6M.

Fear Index Flips as Investors Turn Cautious 😨

The Crypto Fear & Greed Index dropped to 44 (“Fear”) on Wednesday after a long stretch in “Greed,” reflecting the cooling sentiment. While some commentators warn this signals deeper weakness, analysts caution it’s too early to confirm a trend reversal.

ETF expert Eric Balchunas noted that Ether ETFs outshone Bitcoin in July, calling ETH the new “killer app” of crypto, supported by BitMine’s ETH treasury strategy led by Thomas Lee of Fundstrat.

👉 The data suggests investors aren’t abandoning crypto but are reassessing positions during volatility, using ETFs as quick entry and exit points.