Bitcoin ETFs See $523M in Outflows, Ethereum Funds Lose $422M as Investors Reposition Amid Macro Shifts

Key Takeaways:

• Economic uncertainty wipes out $945.6M from Bitcoin and Ether ETFs.
• Michael Saylor’s Strategy stock drop sparks further fear.
• Upcoming commentary from Fed Chair Jerome Powell is highly anticipated for critical signals on monetary policy.

On August 19, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced severe outflows, losing $523.3 million in a single day. This selloff extended to Ethereum-linked ETFs, which shed another $422.3 million. 

Analysts believe this wave of redemptions reflects caution ahead of key macroeconomic events. With key signals on interest rates and inflation pending, investors are shifting funds to safer assets.

Fidelity BTC ETFs Recorded Biggest Outflows

According to Farside Investor data, the selloff in Bitcoin ETFs was led by Fidelity’s FBTC, which recorded $246.9 million in withdrawals. 

But the exodus was widespread. 

Bitwise’s BITB lost $86.8 million, Ark Invest’s ARKB shed $63.3 million, and WisdomTree’s BTCW posted $115.5 million in outflows.

The reversal was striking. Earlier in the month, several Bitcoin ETFs had been drawing consistent inflows, reflecting renewed appetite for digital assets. That momentum has now shifted, with this recent $523 million ranking as one of the largest single-day outflows since April.

The outflows closely mirror Bitcoin’s pullback. 

The premier digital asset fell to the $113,000 zone, marking an 8.6% decline from its all-time high of $124,457 reached on August 14. 

Ether ETFs faced parallel pressure. 

Fidelity’s FETH fund bled $156.3 million in outflows, while Grayscale’s ETHE lost $122 million, and its Mini Ethereum Trust shed $88.5 million. 

In total, $422.3 million flowed out of Ether ETFs, the second-largest daily outflow since their launch in July 2024.

The scale of outflows pointed to more than simple profit-taking. Analysts say some institutions are rotating capital into safer assets like cash and treasuries. 

Others are cutting risk in response to renewed inflation concerns, a stronger U.S. dollar, and doubts about the Federal Reserve’s policy direction.

Fresh economic data added fuel. The July producer price index rose 3.3% year-over-year, while climbing 0.9% from the prior month, far above the 0.2% forecast. 

HOLY CRAP!

This is Really bad for Inflation:

The US PPI numbers are out and they're MUCH higher than expected! Headline PPI YoY: 3.3% (exp 2.5%, prev 2.3%).

Now let me explain why this is so terrible for inflation.

PPI = Producer Price Index. It's basically the wholesale… pic.twitter.com/82tinn8qnz

— Brian Krassenstein (@krassenstein) August 14, 2025

The hotter-than-expected reading suggested inflationary pressures remain sticky. This raised fears that the Federal Reserve will move cautiously on rate cuts, keeping financial conditions tight for longer.

Markets now await new macro signals. The minutes from July’s Federal Open Market Committee meeting are due later today. Fed Chair Jerome Powell will also deliver a speech on August 22, where investors expect clarity on the September rate decision. 

Until then, Bitcoin and Ethereum ETFs may remain vulnerable to volatile flows.

Treasury Stocks With Bitcoin Exposure Take a Hit

The sell-off in Bitcoin ETFs and the broader market downturn spilled into companies holding Bitcoin on their balance sheets.

Michael Saylor’s firm, Strategy (MSTR), fell to its lowest level in nearly four months. The stock has dropped 8% since August 18, pressured by Bitcoin’s pullback and investor concerns over Strategy’s updated share issuance plans.

In an X post, Saylor announced changes to the company’s MSTR Equity ATM Guidance. The update allows Strategy to issue shares tactically when its stock trades below 2.5 times its net asset value, or mNAV. 

Proceeds could be used to cover debt interest, fund preferred equity dividends, or take advantage of market opportunities.

Some shareholders criticized the change. They argued it contradicted Strategy’s Q2 earnings guidance, which said shares would only be issued below that threshold to meet debts or pay dividends. 

I’ve been a holder of MSTR since August 2020. I’ve held through bears, bulls and the split I.e, until today where I will now be taking some profit.

There are too many question marks (red flags) about what you’re doing that’s making me feel for the first time a bit unsettled.

— Biff’s (@biff2025) August 18, 2025

Others, however, saw it differently. The flexibility could let the company buy more Bitcoin, especially at current prices.

Strategy currently holds 629,376 BTC, and 60% of that stash was acquired after Donald Trump’s election victory in 2024. 

With Bitcoin’s price falling back from record highs, many expect Saylor will take advantage of the dip to buy more. 

The stock’s decline highlights a broader challenge. If Strategy issues more shares at depressed levels, it risks diluting investors.