Cryptocurrency investment products saw an increase in losses on Tuesday, with Bitcoin fund outflows skyrocketing over 300% and Ether losses doubling, both ranking as the second-largest outflows this month.
Spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced $523 million in outflows on Tuesday, rising more than four times from Monday, according to Farside Investors data.
Ether (ETH) ETFs also noted significant losses, with outflows doubling from $200 million on Monday to $422 million.
Both Bitcoin and Ether funds have seen 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 dominates outflows with over $400 million
Fidelity Investments drove Tuesday’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 faced significant withdrawals, with the Grayscale Bitcoin Trust ETF (GBTC) reporting $116 million in outflows and the Grayscale Ethereum Trust (ETHE) shedding $122 million.
Daily Bitcoin and Ether ETF flows since Aug. 13. Source: Farside.co.uk
In contrast, BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw no outflows, while the iShares Ethereum Trust ETF (ETHA) experienced only minor outflows of $6 million.
Fear & Greed Index drops to “Fear”
Despite the fact that the three-day outflows pale in comparison to the record inflows for both Bitcoin and Ether funds in 2025, these losses indicate a marked shift in investor sentiment amidst declining prices.
On Wednesday, the Crypto Fear & Greed Index — a tool measuring the overall sentiment of the crypto market — shifted to “Fear,” registering a score of 44. This change followed a long period of optimism, suggesting increasing caution among investors.
The Crypto Fear & Greed Index turned to “Fear” on Wednesday after a month of “Greed.” Source: Alternative.me
While several social media commentators have expressed concerns over the recent outflows, leading ETF analysts have yet to provide insights on the losses, indicating it might be premature to draw conclusions.
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“A few daily ETF outflows doesn’t equate to TradFi [traditional finance] abandoning crypto — it’s simply people using a straightforward way to jump on and off Bitcoin, indicating that the market remains vibrant and newcomers are still making mistakes,” 21Rates adviser Ryan Park noted in a comment on X.
Senior Bloomberg ETF analyst Eric Balchunas took to X on Monday to point out that Ether ETFs made Bitcoin the “second best” crypto asset in July, as investors increasingly transitioned from Bitcoin ETFs to Ether ETFs.
“I credit @fundstrat [Thomas Lee] with highlighting this, along with stablecoin legislation, which gave Ether a strong advocate and its essential application,” Balchunas stated.
He specifically mentioned BitMine, a newly established “MicroStrategy of Ether,” which appointed Fundstrat’s Thomas Lee to oversee its ETH treasury strategy in June.
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