TLDR
- Spot Bitcoin ETFs recorded $523 million in net outflows on Tuesday.
- Fidelity’s FBTC fund led the Bitcoin ETF redemptions with $246.9 million in outflows.
- Grayscale’s GBTC reported $115.53 million in negative flows on the same day.
- Spot Ethereum ETFs saw $422.3 million in outflows, marking their second-largest daily loss.
- Fidelity’s FETH led Ethereum ETF losses with $156.32 million in redemptions.
Institutional redemptions from crypto ETFs surged on Tuesday amid key economic uncertainty. Bitcoin ETFs recorded $523 million in net daily outflows, while Ethereum ETFs lost $422.3 million. The flows highlight a shift in fund positioning ahead of key macroeconomic events.
Bitcoin ETFs Lead Outflows as Market Sentiment Shifts
Bitcoin ETFs faced their second-largest single-day outflows this year, reflecting a sharp turn in institutional demand. According to SoSoValue, Tuesday’s net redemptions totaled $523 million, excluding figures from Invesco’s BTCO. Fidelity’s FBTC accounted for the largest portion, seeing $246.9 million in outflows.
Meanwhile, Grayscale’s GBTC recorded $115.53 million in outflows, continuing its streak of negative flows this month. BlackRock’s IBIT reported zero flows for the day, signaling stable holdings despite broader selling. Additional outflows came from Bitwise and Ark & 21Shares products, deepening the daily losses.
Rachael Lucas, a crypto analyst at BTC Markets, stated, “U.S. spot crypto ETFs experienced some of their largest redemptions since launch.” She said the move suggested a combination of profit-taking and macroeconomic caution. Short-term rate expectations and inflation signals drove many to rotate out of risk assets.
Spot Ethereum ETFs See Second-Largest Daily Outflows
Ethereum ETFs also recorded substantial losses as macro pressure spread to altcoin-linked products. Total net outflows reached $422.3 million, led by Fidelity’s FETH with $156.32 million in redemptions. Grayscale’s ETHE followed closely with $122 million in outflows, while its Mini Trust lost $88.5 million.
The size of the redemptions marked the second-highest daily outflow total since spot Ether ETFs launched. These flows underscored rising institutional skepticism toward Ethereum exposure under current macro conditions. Compared to Bitcoin ETFs, Ethereum products showed a weaker hold on capital.
Lucas explained, “Ethereum faces steeper institutional outflows, leaving it more vulnerable to relative underperformance.” ETF redemptions result in the underlying asset being sold, which amplifies pressure on spot markets. As Ethereum trading volumes remain lighter, outflows affect price dynamics more strongly.
Macro Outlook Dictates Future ETF Flows
Investor focus now turns to upcoming macro data and Federal Reserve commentary for market direction. Wednesday’s release of FOMC minutes and Friday’s Jackson Hole speech could influence future ETF positioning. If the Fed signals dovish intent, flows could shift back toward crypto.
Lucas added, “Redemptions create a drag on spot markets, particularly when the flows are heavy relative to trading volumes.” Bitcoin ETFs currently hold 6.47% of the total BTC supply, cementing their price influence. Ethereum ETFs hold 5.17% of ETH’s market cap, amplifying the impact of any large redemptions.
While Bitcoin ETFs show signs of whale accumulation buffering declines, Ethereum lacks that structural support for now. Crypto prices may remain under pressure until inflation, interest rate clarity, and ETF flows stabilize. The coming week’s macro signals could define short-term ETF trends.
