Cryptocurrency funds experienced massive losses on Tuesday following reports by Spot Bitcoin ETFs of withdrawals worth $533 million, increasing by over 300 percent. Ether ETFs doubled their withdrawals too, reporting losses worth $422 million and contributing to the current three-day consecutive withdrawals.
Bitcoin funds registered daily exits worth $523 million, up four times from Monday, data from Farside Investors show. Ether funds came next, with withdrawals rising from a level of $200 million on Monday to $422 million, reflecting heavy selling pressure on major exchanges.
Fidelity Investments announced top outflows with $247 million departing its Fidelity Wise Origin Bitcoin Fund and $156 million from Fidelity Ethereum Fund. Combined, Fidelity experienced $403 million taken out within a single trading day, and this was the highest level of action among major issuers.
Grayscale Investments also witnessed huge exits, with its Grayscale Bitcoin Trust ETF witnessing a withdrawal of $116 million and its Ethereum Trust ETF witnessing losses of around $122 million. These reflect signs of tremendous pressure on investor sentiment, which runs parallel to the sliding valuations of major cryptocurrencies since mid-August sessions.
Bitcoin Fear Index reflects market anxiety
To the contrary, BlackRock reported durability with its iShares Bitcoin Trust ETF experiencing no redemptions and its Ethereum Trust ETF only receiving minimal $6 million redemptions. Relatively low numbers suggest confidence among investors remains relatively sound within BlackRock’s vehicles relative to competitors during this current period of decline.
The Crypto Fear and Greed Index moved significantly this week, dropping from previous optimism to fear with a reading of 44 at present. Observers identified this drop as echoing worries surfacing as Bitcoin dropped 8.3 percent and Ether shed 10.8 percent since Wednesday.
While they come on the second-largest outflows this month, however, analysts commented that it was premature to conclude whether trends persist over longer stretches. Federation professionals believe prudence by investors is a signal of conditions as a whole rather than a longer-range rejection, regardless of social commentators’ guessing about declining institutional interest.
Thomas Lee of Fundstrat recently gained attention after joining BitMine’s Ether strategy, which analysts suggested demonstrated continuing institutional trust. Even during short-term selloffs, many institutions remain committed to Ethereum-based projects, reflecting mixed but notable resilience within evolving cryptocurrency investment markets.
