Bitcoin ETFs Lose Over $1 Billion in Three Days, but Bitwise Sees a Short-Term Mood Swing

Investors took another $116 million out of US spot Bitcoin ETFs on Tuesday, pushing total withdrawals since Friday to $1.16 billion, based on Blockto figures. Tuesday’s exit was much smaller than the $399 million pulled on Monday and the $643 million pulled on Friday, which suggests selling is cooling after three straight red sessions. For the year, the funds are now down roughly $153 million on a net basis.

Bitwise Says Institutions Are Holding On

Bitwise survey of 15 institutions in which none had trimmed Bitcoin ETF exposure during the bear market, and to regulatory filings showing most investor groups, except hedge funds, kept their positions. Retail buyers still own most of the shares and tend to react harder to volatility.

Sentiment Improves as Bitcoin Recovers

The Crypto Fear and Greed Index climbed to 37 from 33 on Monday, though it still sits in the fear zone. Bitcoin rose about 1.9% over 24 hours to trade near $78,000.

Custody Concerns After the Binance Hack

The $6.3 billion Binance breach led some observers to question ETF custody, especially since large funds depend on a handful of custodians.