Bitcoin and Ethereum ETFs Lose Nearly $1 Billion – What’s Behind the Move?
The crypto ETF market had a rough day this week. On Tuesday, U.S. spot Bitcoin and Ethereum exchange-traded funds...
Quick overview
- U.S. spot Bitcoin and Ethereum ETFs experienced nearly $945 million in withdrawals, marking one of the largest daily outflows since their launch.
- Bitcoin funds saw the most significant outflows, with Fidelity's FBTC and Grayscale's GBTC leading the losses, while Ethereum ETFs also faced substantial redemptions.
- Investor caution has increased due to recent economic data, leading many to lock in profits or shift to cash and Treasuries ahead of key Federal Reserve updates.
- The future of ETF flows may hinge on the Fed's upcoming announcements, which could either stabilize or further pressure the crypto market.
The crypto ETF market had a rough day this week. On Tuesday, U.S. spot Bitcoin and Ethereum exchange-traded funds saw almost $945 million pulled out. That’s one of the biggest daily withdrawals since these products launched. But why are investors moving out now, and what does it mean for prices?
Bitcoin ETFs Take the Biggest Hit – Why Are Investors Selling?
SoSoValue data reveals that, Bitcoin funds led the way with $523.3 million in outflows. Fidelity’s FBTC saw the largest withdrawals at $246.9 million, while Grayscale’s GBTC lost $115.5 million. Ark and Bitwise products also faced big redemptions. Meanwhile, BlackRock’s iShares Bitcoin Trust had no flows, showing some investors are waiting rather than making new moves.
Because spot ETFs must sell real Bitcoin when investors redeem shares, these outflows directly add selling pressure to the market. As a result, Bitcoin slipped 1.57% to $113,500 by early Wednesday. Could this be a short pause, or the start of something bigger?
Ethereum ETFs Also See Heavy Withdrawals – Is It Worse Than Bitcoin?
Ethereum funds were not spared. According to SoSoValue data, they saw $422.3 million in total redemptions. Fidelity’s FETH lost $156.3 million, while Grayscale’s ETHE dropped $122 million. The Mini Ethereum Trust also had $88.5 million in withdrawals.
This was the second-largest daily outflow since Ether ETFs launched. Because Ether ETFs control a smaller share of total market value compared to Bitcoin, large withdrawals hit harder. As a result, Ether slipped 1.54% to $4,163. Could this mean Ethereum is more at risk of underperforming in the short run?
Macro Signals Are Also Adding to Caution – What Are Traders Waiting For?
These moves came as investors grew cautious after last week’s hotter-than-expected producer price index (PPI). That data reduced hopes for a September rate cut and pushed the U.S. dollar higher. In turn, risk assets like crypto faced selling pressure.
US wholesale inflation rose much more than expected in July, with prices rising at the fastest monthly pace in three years.https://t.co/BGgAu33VCX
— CNN (@CNN) August 14, 2025
Now, markets are waiting for key updates. The Federal Reserve’s July meeting minutes are due later today, while Chair Jerome Powell’s speech at Jackson Hole on Friday could guide policy expectations. Until then, some investors are locking in profits from recent gains. Meanwhile, others are moving into cash or Treasuries. But will fresh signals from the Fed bring confidence back to crypto ETFs? We will see!
-Target Earnings
-UK CPI
-FOMC Meeting MinutesHere's what to watch tomorrow https://t.co/ZCGVae9Rda pic.twitter.com/XgDm6sRSyO
— Bloomberg TV (@BloombergTV) August 19, 2025
Can ETF Flows Turn Around?
In the near term, these redemptions create direct pressure on spot markets and keep traders cautious. Still, ETFs remain important for crypto. It is because, they currently hold 6.39% of Bitcoin’s total market value and 5.08% of Ethereum’s. This shows demand has not disappeared but is shifting as investors rebalance.
Looking ahead, it looks like most things are depending on the Fed for a while. A softer tone could quickly turn outflows into inflows, helping both Bitcoin and Ethereum recover. For now, Bitcoin looks better supported by large-scale accumulation. At the same time, Ethereum remains more exposed to deeper institutional selling.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save