Spot Bitcoin and Ethereum exchange-traded funds in the United States saw a combined $797 million in net outflows on Tuesday, as institutional investors repositioned during a broad crypto sell-off.
Data from Farside Investors shows that Bitcoin ETFs lost $577.74 million, the largest single-day outflow since August 1. Fidelity’s FBTC recorded $356.6 million in exits, ARK & 21Shares’ ARKB saw $128 million withdrawn, and Grayscale’s GBTC lost $48.9 million. In total, seven Bitcoin funds saw negative flows, extending the current outflow streak to five consecutive days and totaling $1.9 billion in redemptions.
Ethereum ETFs also suffered, registering $219.37 million in net outflows – led by BlackRock’s ETHA, which saw $111 million withdrawn. Grayscale and Fidelity’s Ether funds also posted outflows. Meanwhile, Solana ETFs managed small inflows of $14.83 million, marking their weakest day since launch.
Crypto analyst Rachael Lucas from BTC Markets described the pattern as a “decisive shift in institutional positioning,” noting that the selling represents a strategic recalibration amid tightening macro conditions. The U.S. dollar index (DXY) climbed above 100 after Federal Reserve Chair Jerome Powell’s hawkish remarks, dashing hopes for a December rate cut and sparking a broader risk-off sentiment.
The crypto fear and greed index dropped sharply to 21, signaling extreme fear. According to Derek Lim, research lead at Caladan, Powell’s comments and uncertainty over a potential U.S. government shutdown have added to the caution among investors.
Still, Lim maintained a cautiously bullish long-term outlook, noting that while delayed rate cuts may weigh on prices in the short term, overall macro conditions remain supportive. “We’re still moving toward the end of quantitative tightening,” he said, suggesting that eventual rate cuts could restore momentum.
At press time, BTC traded at $101,685, down 2.72% in 24 hours, while ETH fell 5.73% to $3,302.
