- Bitcoin and Ethereum ETFs record $797M outflows amid market selloff.
- Institutional investors cut crypto exposure as dollar strengthens.
- Fear index drops to “extreme fear” as risk assets face macro pressure.
Spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States saw combined net outflows of $797 million on Tuesday as institutional investors reduced exposure during a broad market selloff. The movement marks the fifth consecutive day of withdrawals, reflecting what analysts describe as a rebalancing driven by macroeconomic factors.
According to data from SoSoValue, Bitcoin ETFs accounted for the largest portion of the outflows, with $577.74 million leaving the sector, the biggest single-day withdrawal since August 1. Fidelity’s FBTC led with $356.6 million in redemptions, followed by Ark & 21Shares’ ARKB with $128 million and Grayscale’s GBTC with $48.9 million.
In total, seven spot Bitcoin funds posted negative flows, extending their cumulative five-day outflow tally to $1.9 billion. The selloff coincided with a 21.5% drop in Bitcoin’s price, from $125,000 to around $99,000, a decline that analysts view as part of a broader institutional repositioning rather than panic selling.
Ethereum and Solana ETFs Diverge
Spot Ethereum ETFs recorded $219.37 million in net outflows on the same day. BlackRock’s ETHA accounted for $111 million, while Grayscale and Fidelity’s products also reported redemptions.
In contrast, Solana-based ETFs registered small inflows of $14.83 million, their smallest daily net addition since debuting last week.
Institutional Strategy Shift
“The fifth straight day of outflows signals a shift in institutional positioning,” said Rachael Lucas, crypto analyst at BTC Markets. She described the activity as a “recalibration” in response to changing macroeconomic conditions rather than a wholesale exit from digital assets.
Lucas attributed the move to risk management decisions following Federal Reserve Chair Jerome Powell’s recent comments, which reduced expectations of a December interest rate cut and pushed the U.S. dollar index above 100. The stronger dollar has weighed on risk assets, including cryptocurrencies that remain correlated with technology stocks.
Sentiment at Extreme Fear Levels
The Crypto Fear and Greed Index dropped to 21, signaling “extreme fear,” down from 42 the previous day. Derek Lim, research lead at Caladan, said the stronger dollar and uncertainty surrounding a potential U.S. government shutdown have fueled the market’s cautious stance.
Lim added that despite short-term volatility, the broader market structure remains intact as investors await clarity on monetary policy and macroeconomic direction.
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About the Author: Peter Mwangi
