Bitcoin News Today: Bitcoin and Ether ETFs Lose $945M in 3 Days Amid 8.3% and 10.8% Price Drops

Bitcoin and Ether ETFs experienced a dramatic exodus of capital in late August 2025, with nearly $1 billion in outflows recorded between August 18–20 [1]. The largest single-day outflow occurred on Tuesday, when Bitcoin ETFs lost $523 million and Ether ETFs $422 million—marking some of the highest redemptions since these products were launched [2]. This sharp reversal in investor sentiment was led by major providers including Fidelity, Grayscale, and BlackRock, with Fidelity reporting the largest losses via its Fidelity Wise Origin Bitcoin Fund (FBTC) and Fidelity Ethereum Fund (FETH), which together saw $403 million withdrawn [3]. Grayscale also recorded significant outflows, with its Grayscale Bitcoin Trust ETF (GBTC) and Grayscale Ethereum Trust (ETHE) losing $116 million and $122 million, respectively [3].

The outflows coincided with a drop in Bitcoin and Ether prices, which corrected by 8.3% and 10.8% respectively since the start of the month [3]. The market’s response was swift, with liquidity tightening and increased price volatility observed across major exchanges. The Crypto Fear & Greed Index, which had been in a “Greed” phase for a month, fell to 44, signaling a shift toward risk-averse behavior [4]. Analysts such as Ryan Park of 21Rates have noted that such redemptions are part of normal market fluctuations, but the scale of outflows points to heightened uncertainty and caution [5].

Despite the outflows, Bitcoin and Ether ETFs still hold substantial assets under management—$14.6 billion and $2.6 billion, respectively—indicating that the core interest in these investment vehicles remains intact [6]. However, the recent trend has raised questions about the sustainability of investor confidence and the broader implications for market stability. The outflows also highlight varying degrees of trust across different providers, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA) seeing significantly smaller withdrawals compared to others [3].

Analysts remain cautious in assessing the long-term impact of the outflows. Some suggest that the redemptions may be a temporary correction rather than a definitive shift away from crypto-backed ETFs [5]. Others point to the broader context of market volatility and uncertainty ahead of key Federal Open Market Committee (FOMC) events [7]. The ongoing debate over the relative performance of Bitcoin and Ether ETFs has also intensified, with some investors showing a preference for Ethereum-based products [7].

The market’s adjustment to these outflows could have several consequences, including regulatory scrutiny, shifts in trading strategies, and structural changes in fund management. While historical patterns suggest that such volatility can be followed by recovery, the current phase underscores the need for careful monitoring of investor sentiment and liquidity conditions.

Sources:

[1] Cointelegraph, [https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double](https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double)

[2] FXLeaders, [https://www.fxleaders.com/news/2025/08/20/bitcoin-and-ethereum-etfs-lose-nearly-1-billion-whats-behind-the-move/](https://www.fxleaders.com/news/2025/08/20/bitcoin-and-ethereum-etfs-lose-nearly-1-billion-whats-behind-the-move/)

[3] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-ether-etfs-lose-945m-3-days-8-3-10-8-price-drop-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-ether-etfs-lose-945m-3-days-8-3-10-8-price-drop-2508/)

[4] CoinDesk, [https://www.coindesk.com/daybook-us/2025/08/20/etf-outflows-signal-risk-aversion-before-fomc-powell-speech-crypto-daybook-americas](https://www.coindesk.com/daybook-us/2025/08/20/etf-outflows-signal-risk-aversion-before-fomc-powell-speech-crypto-daybook-americas)

[6] CryptoSlate, [https://cryptoslate.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/](https://cryptoslate.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/)