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Cryptocurrency investment products continued to suffer losses on Tuesday, with outflows from Bitcoin funds increasing by over 300% and Ethereum's doubling, both ranked as the second largest outflows this month.

According to data from Farside Investors, ETF funds recorded $523 million withdrawn on Tuesday, more than quadrupling the amount recorded on Monday. Ethereum funds were no less severe, with outflows doubling from $200 million on Monday to $422 million.

As of now, Bitcoin and Ethereum funds have recorded three consecutive days of outflows totaling $1.3 billion, coinciding with strong price corrections of 8.3% and 10.8% respectively since last Wednesday.

Fidelity led the outflows with over $400 million.

Fidelity Investments led yesterday's losses with capital withdrawals of $247 million from the Fidelity Wise Origin Bitcoin Fund (FBTC) and $156 million from the Fidelity Ethereum Fund (FETH), totaling $403 million withdrawn in one day.

Grayscale Investments also recorded significant withdrawals, with the Grayscale Bitcoin Trust ETF (GBTC) reporting $116 million in capital outflows and the Grayscale Ethereum Trust (ETHE) declining by $122 million.

In contrast, BlackRock's iShares Bitcoin Trust ETF (IBIT) had no outflows, while the iShares Ethereum Trust ETF (ETHA) only recorded a modest outflow of $6 million.

The Fear & Greed Index dropped to 'Fear'

Although the outflow over the past three days is negligible compared to the record inflows of both Bitcoin and Ether funds in 2025, these losses indicate a significant change in investor sentiment amid falling prices.

On Wednesday, the Crypto Fear & Greed Index — a tool that tracks the overall sentiment of the cryptocurrency market — shifted to 'Fear,' recording a score of 44. This change comes after a prolonged period of optimism, indicating increasing caution among investors.

While many social media commentators have expressed concerns about the recent outflows, leading ETF analysts have yet to comment on the losses, suggesting it may still be too early to draw conclusions.

"A few days of ETF capital withdrawals doesn't mean traditional finance (TradFi) is abandoning cryptocurrency — it just means people are simply using it to jump in and out of Bitcoin, showing the market is still active and newcomers are still making mistakes," Ryan Park, an advisor at 21Rates, commented on X.

Bloomberg's senior ETF analyst, Eric Balchunas, also spoke on X on Monday to emphasize that Ethereum funds have made Bitcoin the 'second best' cryptocurrency asset in July, as investors increasingly shift from Bitcoin funds to Ethereum funds.

"I have a lot of praise for @fundstrat [Thomas Lee], along with the stablecoin law, for helping Ethereum have a great spokesperson and application," Balchunas shared.

He also mentioned BitMine, a rising 'Strategy of Ethereum', which appointed Thomas Lee of Fundstrat to lead its ETH treasury strategy in June.