Cryptocurrency investment products deepened their losses on Tuesday, with both Bitcoin and Ether funds recording some of their largest outflows this month. According to Farside Investors, spot Bitcoin exchange-traded funds (ETFs) saw $523 million in outflows — more than quadruple the $120 million recorded on Monday. Ether ETFs also witnessed a sharp reversal, with daily withdrawals doubling from $200 million to $422 million. The three-day withdrawal streak now totals $1.3 billion, coinciding with significant price declines across Bitcoin and Ether . CoinGecko data shows Bitcoin has dropped 8.3% and Ether has fallen 10.8% since last Wednesday, underscoring the impact of waning investor confidence. ETFs See Steep Outflows Fidelity Investments led the withdrawals, with $247 million leaving its Fidelity Wise Origin Bitcoin Fund (FBTC) and $156 million exiting the Fidelity Ethereum Fund (FETH). Together, the two accounted for $403 million in outflows on Tuesday alone. Grayscale also experienced substantial losses, with its Bitcoin Trust ETF (GBTC) down $116 million and its Ethereum Trust (ETHE) shedding $122 million. In contrast, BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw no redemptions, and its iShares Ethereum Trust ETF (ETHA) reported only minor outflows of $6 million, suggesting that investors remain more confident in BlackRock’s offerings. Investor Sentiment Shifts as Fear Creeps In The sharp ETF outflows come as market sentiment has cooled after months of bullish momentum. The widely tracked Crypto Fear & Greed Index fell to “Fear” territory on Wednesday with a score of 44, reflecting growing caution among retail and institutional participants. Analysts have so far urged restraint in interpreting the data. “A few daily ETF outflows doesn’t mean traditional finance is abandoning crypto,” noted 21Rates adviser Ryan Park on X. “It just shows investors are moving in and out more flexibly, and some newcomers are still making mistakes.” Bloomberg ETF analyst Eric Balchunas added that Ether ETFs had outperformed Bitcoin in July, buoyed by optimism around Ethereum’s growing utility. He credited Fundstrat’s Thomas Lee — who recently became strategy lead for BitMine, a company dubbed the “MicroStrategy of Ether” — for helping drive Ether’s narrative as a leading asset. The post Bitcoin and Ether Funds See Heavy Outflows as Market Sentiment Turns appeared first on TheCoinrise.com .