An Etymological Dictionary of the German Language/Annotated/Beutel
Beutel (1.), masculine, ‘a ripping chisel, a piece of wood for beating flax,’ first occurs in Modern High German; the t points to a Low German origin; in High German we should have expected fs, in Middle High German ȥ (Middle High German bôȥel, bœȥel). Compare Low German bœ̂tel, Anglo-Saxon bŷtel, English beetle (for beating flax); from a root baut, ‘to strike, beat’ (Anglo-Saxon beátan, English beat, Old Icelandic bauta, Old High German bôȥȥan), which still appears in Amboß.
Beutel (2.), masculine, ‘purse,’ from Middle High German biutel, masculine, neuter, ‘purse, pocket,’ Old High German bûtil; compare Dutch buidel (buil), ‘purse’; Gothic *bûdils. The word cannot, however, be traced farther back than Old High German; its kinship to bieten, root bud, from bhudh, would throw no light on the meaning.