Finance

Bitcoin and Ether ETFs Face $1 Billion Outflow: Is This the End of the Bull Run?

August 20, 2025, 9:08 AM

A close-up photograph showing a US hundred-dollar bill with a Bitcoin coin, an Ethereum coin, and several gold nuggets placed on top of it.

A conceptual image that juxtaposes traditional fiat currency, represented by a hundred-dollar bill, with a Bitcoin coin, an Ethereum coin, and physical gold nuggets. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Spot Bitcoin and Ether exchange-traded funds (ETFs) collectively experienced nearly $1 billion in outflows on Tuesday, escalating a three-day streak of withdrawals to a total of $1.3 billion.

Bitcoin spot ETFs saw $523 million in outflows, while Ether ETFs recorded $422 million in withdrawals on Tuesday, both marking the second-largest daily losses for their respective funds this month.

The sustained outflows coincided with significant price declines in the cryptocurrency market (Bitcoin down 8.3%, Ether down 10.8% since last Wednesday) and a shift in the Crypto Fear & Greed Index to “Fear,” indicating a notable change in investor sentiment.

The Story So Far

The recent nearly $1 billion in outflows from Spot Bitcoin and Ether ETFs, part of a three-day streak totaling $1.3 billion, is occurring amid sharp price corrections across the cryptocurrency market. This coincides with a notable shift in investor sentiment from optimism to “Fear” on the Crypto Fear & Greed Index, signaling growing caution and a withdrawal of capital by investors.

Why This Matters

The recent nearly $1 billion in outflows from spot Bitcoin and Ether ETFs, contributing to a $1.3 billion three-day withdrawal streak, signals a marked shift in investor sentiment towards “Fear,” coinciding with sharp price corrections in the cryptocurrency market. This trend suggests a growing caution among investors and could exert further downward pressure on crypto prices, potentially challenging the perceived stability and sustained attractiveness of these new financial products in the short term.

Who Thinks What?

Investors are exhibiting “Fear” and withdrawing funds from Bitcoin and Ether spot ETFs, signaling a shift to caution amid sharp price corrections in the cryptocurrency market.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA) showed relative stability with minimal or no outflows, contrasting with significant withdrawals from other funds.

Leading ETF analysts have not yet commented on the recent losses, suggesting it may be premature to draw definitive long-term conclusions from the current downturn.

Spot Bitcoin and Ether exchange-traded funds (ETFs) collectively saw nearly $1 billion in outflows on Tuesday, marking a significant escalation in withdrawals after three consecutive days of losses. The substantial outflows, totaling $955 million for the day, coincided with sharp price corrections across the cryptocurrency market, indicating a notable shift in investor sentiment.

Outflow Details

Bitcoin spot ETFs alone experienced $523 million in outflows on Tuesday, a more than fourfold increase from Monday’s figures, according to data from Farside Investors. This surge represented the second-largest single-day outflow for Bitcoin funds this month.

Ether ETFs also faced considerable pressure, with their outflows doubling from $200 million on Monday to $422 million on Tuesday. These figures also represent the second-largest daily losses for Ether funds in the current month.

Cumulative Impact and Price Correlation

The three-day streak of withdrawals from both Bitcoin and Ether funds has accumulated to a total of $1.3 billion. This period of sustained outflows has occurred alongside significant price declines, with Bitcoin dropping 8.3% and Ether falling 10.8% since last Wednesday, according to CoinGecko data.

Leading Funds Affected

Fidelity Investments led Tuesday’s losses, with its Fidelity Wise Origin Bitcoin Fund (FBTC) seeing $247 million in outflows and the Fidelity Ethereum Fund (FETH) experiencing $156 million in withdrawals, totaling $403 million for the day.

Grayscale Investments also reported substantial withdrawals from its products. The Grayscale Bitcoin Trust ETF (GBTC) saw $116 million in outflows, while the Grayscale Ethereum Trust (ETHE) shed $122 million.

In contrast to the widespread withdrawals, BlackRock’s iShares Bitcoin Trust ETF (IBIT) recorded no outflows on Tuesday. Its iShares Ethereum Trust ETF (ETHA) also saw only modest outflows of $6 million, indicating a more stable performance compared to its peers.

Shifting Investor Sentiment

The recent outflows suggest a notable change in investor sentiment amid declining cryptocurrency prices. On Wednesday, the Crypto Fear & Greed Index, a widely followed metric, shifted to “Fear” with a score of 44. This move followed an extended period of market optimism, signaling growing caution among investors.

While the recent three-day outflows are significant, they remain smaller in comparison to the record-breaking inflows both Bitcoin and Ether funds experienced in 2025. Leading ETF analysts have yet to comment on the recent losses, suggesting it may be premature to draw definitive long-term conclusions from this recent downturn.