Cryptocurrency investment products deepened their losses on Tuesday, as Bitcoin fund outflows surged over 300% and Ether outflows doubled, marking the second-largest withdrawals of the month.
Spot Bitcoin exchange-traded funds (ETFs) saw $523 million leave on Tuesday, more than quadrupling Monday’s outflows, according to Farside Investors.
Ether ETFs also faced significant losses, with outflows climbing from $200 million on Monday to $422 million.
Overall, Bitcoin and Ether funds have experienced three consecutive days of withdrawals totaling $1.3 billion, amid sharp price declines of 8.3% for Bitcoin and 10.8% for Ether since last Wednesday, data from CoinGecko shows.
Fidelity tops outflows, exceeding $400 million
Fidelity Investments drove yesterday’s outflows, with $247 million withdrawn from its Fidelity Wise Origin Bitcoin Fund (FBTC) and $156 million from the Fidelity Ethereum Fund (FETH), totaling $403 million for the day.
Grayscale Investments also faced significant withdrawals, as the Grayscale Bitcoin Trust ETF (GBTC) saw $116 million leave, while the Grayscale Ethereum Trust (ETHE) lost $122 million.
In contrast, BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced no outflows, and the iShares Ethereum Trust ETF (ETHA) recorded only modest outflows of $6 million.
Fear & Greed Index slips to “Fear”
Although the three-day outflows are small compared with the record-breaking inflows seen for Bitcoin and Ether funds in 2025, they signal a shift in investor sentiment amid falling prices.
On Wednesday, the Crypto Fear & Greed Index — which tracks overall market sentiment — flipped to “Fear,” registering a score of 44. This marked a break from a prolonged period of optimism, suggesting rising caution among investors.
While social media commentators have voiced concern over the recent outflows, leading ETF analysts have remained largely silent, indicating it may be too early to draw firm conclusions.
“A few daily ETF outflows don’t mean TradFi [traditional finance] is abandoning crypto — it’s just investors using a simple way to hop on and off Bitcoin, showing the market is still active and new participants are still making mistakes,” wrote 21Rates adviser Ryan Park on X.
Senior Bloomberg ETF analyst Eric Balchunas noted on X that Ether ETFs outperformed Bitcoin in July, effectively making Bitcoin the “second best” crypto asset as investors shifted from Bitcoin ETFs to Ether ETFs.
“I give @fundstrat [Thomas Lee] a lot of credit; along with stablecoin legislation, it gave Ether a strong advocate and a killer use case,” Balchunas added.
He specifically cited BitMine, a new “MicroStrategy of Ether,” which appointed Fundstrat’s Thomas Lee to lead its ETH treasury strategy in June.
