Nearly $1 Billion Pulled From Bitcoin and Ethereum ETFs in a Single Day

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.

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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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