02.08.2025 08:59

Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a dramatic reversal on Friday, witnessing significant selling pressure that erased recent gains. This marked a sudden shift in investor sentiment after a period of consistent inflows.

Data from Farside Investors revealed a staggering $812.25 million in net outflows from spot Bitcoin ETFs in a single day – the second largest daily withdrawal in their history. This substantial outflow reduced total net inflows to $54.18 billion and lowered assets under management to $146.48 billion, representing a little over 6% of Bitcoin's overall market capitalization. Fidelity's FBTC and ARK Invest's ARKB bore the brunt of the sell-off, collectively losing over $659 million. Grayscale's GBTC and BlackRock's IBIT experienced smaller declines, yet trading volume remained robust, exceeding $6 billion, with BlackRock's IBIT accounting for the majority of this activity.

The positive momentum in Ethereum ETFs also faltered. Following a record-breaking 20-day streak of inflows, spot ETH ETFs saw outflows totaling $152.26 million. This downturn decreased total assets under management to $20.11 billion, equating to 4.7% of Ethereum's market cap. Grayscale's ETHE, Bitwise's ETHW, and Fidelity's FETH all recorded losses, while BlackRock's ETHA remained relatively stable.

This sharp reversal is particularly striking given the record inflows into Ether ETFs in mid-July, which saw over $1.3 billion invested across two consecutive trading sessions. The rapid shift highlights the volatility and unpredictable nature of investor sentiment within the ETF market, even after prolonged periods of strong buying pressure. This underscores the need for caution and careful analysis when navigating this dynamic investment landscape.