Cryptocurrency investment vehicles saw significant losses on Tuesday as spot Bitcoin and Ether exchange-traded funds experienced combined outflows of nearly $1 billion. According to Farside Investors data, Bitcoin funds registered withdrawals of $523 million, a 300% surge from Monday. Ether ETFs lost $422 million, doubling the previous day’s redemptions.
These three days of redemptions have trimmed $1.3 billion from digital-asset ETFs, coinciding with price drops—Bitcoin fell 8.3% to trade near $118,000, while Ether slid 10.8% to around $4,100 since last Wednesday.
Fidelity Investments led the outflows, with $247 million pulled from its Bitcoin fund (FBTC) and $156 million from its Ethereum fund (FETH). Grayscale also saw substantial redemptions: $116 million from the GBTC trust and $122 million from ETHE.
In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) remained stable, recording no outflows, and its iShares Ethereum Trust (ETHA) saw only $6 million withdrawn. Analysts attribute this divergence to IBIT’s lower fee structure and broader distribution network.
The Crypto Fear & Greed Index flipped to “Fear” at 44 on Wednesday, reflecting growing investor caution. Market watchers note that while outflows can indicate reduced confidence, they also offer buying opportunities for long-term holders.
ETF strategist Ryan Park commented: “Short-term investors often use ETFs to time the market. Today’s outflows highlight cyclical volatility, not a structural shift.” Bloomberg’s Eric Balchunas added that Ether’s strong fundamentals could attract future inflows despite recent sell-offs.
With Bitcoin prices consolidating below $120,000 and Ethereum facing resistance near $4,200, ETF flows will remain sensitive to price movements and macroeconomic cues, including upcoming Fed and PPI data releases.
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