Nearly $1 Billion Pulled From Bitcoin and Ethereum ETFs in a Single Day
Institutional investors pulled nearly $1 billion from U.S. spot Bitcoin and Ethereum ETFs on Tuesday, signaling a defensive move ahead of a critical week for macroeconomic policy.
Data from Farside Investors shows Bitcoin ETFs lost $523 million in daily net flows, led by Fidelity’s FBTC with $246.9 million in redemptions and Grayscale’s GBTC with $115.5 million.
Meanwhile, Ethereum products shed $422.3 million, their second-worst outflow day since launch, with Fidelity’s FETH and Grayscale’s ETHE topping the list of redemptions.
Analysts say the withdrawals reflect a shift in positioning rather than collapsing demand. “Funds are locking in profits or reallocating to cash and Treasuries, while others are simply de-risking in response to inflation concerns and Fed uncertainty,” noted Rachael Lucas, strategist at BTC Markets.
The Federal Reserve remains the focal point for traders. After hotter-than-expected PPI data last week dimmed hopes for a September rate cut, attention has turned to the release of July FOMC minutes and Jerome Powell’s Jackson Hole address later this week. Until then, sentiment remains fragile.
Redemptions from spot ETFs carry direct selling pressure on underlying assets, and both Bitcoin and Ethereum extended their slide, with BTC down to $113,500 and ETH at $4,163 on Wednesday morning. Lucas warned that Ethereum could lag further given sharper institutional outflows, while Bitcoin continues to find some support from whale accumulation and corporate treasuries.
Despite the turbulence, ETFs remain structurally important, holding over 6% of Bitcoin’s market cap and just above 5% of Ethereum’s. A dovish Fed pivot could quickly swing flows back to positive, potentially restoring momentum to both assets.
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Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
