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Bitcoin and Ethereum ETFs See Massive Outflows Amid Market Turmoil

August 20, 2025 — U.S. spot Bitcoin and Ethereum ETFs experienced one of their steepest sell-offs yet, as institutional investors pulled a combined $945 million in just one day on Tuesday, signaling heightened caution ahead of looming macroeconomic developments.

Key Highlights

Bitcoin ETFs recorded net outflows of $523 million—a dramatic surge over the previous day—making it the second-largest one-day redemptions this month.

Ethereum ETFs were not spared: they shed $422.3 million, marking their second-highest daily outflow since launch.

Major Players Behind the Exodus

Fidelity took the lead with $246.9 million withdrawn from its Bitcoin fund (FBTC) and $156.3 million from its Ethereum fund (FETH), summing to over $403 million in redemptions.

Grayscale followed with sizable losses too—$115.5 million from GBTC and $122 million from ETHE, including an additional $88.5 million from its Mini Ethereum Trust.

In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) saw no outflows, while its Ethereum fund (ETHA) experienced only minimal redemptions (~$6 million).

Market Sentiment and Broader Context

This marked the third consecutive day of net outflows, adding up to approximately $1.3 billion withdrawn from Bitcoin and Ethereum ETFs.

The sell-off coincided with 8.3% and 10.8% declines in Bitcoin and Ethereum prices respectively over the past week.

Investor sentiment deteriorated sharply, with the Crypto Fear & Greed Index plunging to “Fear” (score: 44) following a prolonged period of optimism.

What’s Driving the Redemptions?

Analysts point to a mix of profit-taking, macro risk aversion, and rising rate and inflation worries. As Rachael Lucas, crypto analyst at BTC Markets, noted: