Spot Bitcoin ETFs See Largest Outflows Since May 1, Totaling $287M

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto…

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Last updated:

September 4, 2024 07:06 EDT

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U.S. spot Bitcoin exchange-traded funds (ETFs) experienced their largest outflows since May 1, with net outflows reaching $287.78 million on Tuesday

According to data from SosoValue, BlackRock’s IBIT, the largest spot Bitcoin ETF by assets, reported no significant flows for the day.

On the other hand, Grayscale’s GBTC, the second-largest spot Bitcoin ETF, saw $50.39 million withdrawn.

Fidelity’s FBTC faced the heaviest losses, with $162.26 million in outflows.

More Funds See Outflows

Other notable outflows included Ark and 21Shares’ ARKB, which recorded $33.6 million in withdrawals, and Bitwise’s BITB, which saw $24.96 million leave the fund.

Additionally, ETFs managed by VanEck, Valkyrie, Invesco, and Franklin Templeton also reported smaller outflows.

The outflows came as Wall Street saw a significant downturn, triggered by weaker-than-expected U.S. manufacturing data.

The Institute for Supply Management (ISM) manufacturing index for August came in at 47.2%, a slight increase from July but still below the 50% mark, indicating contraction.

Spot Bitcoin ETF trading volume reached $1.56 billion on Tuesday, slightly up from $1.54 billion last Friday, despite the U.S. market being closed on Monday for a holiday.

Meanwhile, U.S. spot Ether ETFs also recorded outflows, with $47.4 million leaving the market on Tuesday, marking the largest single-day outflows since August 2.

The Grayscale Ethereum Trust (ETHE) was hit the hardest with $52.31 million in withdrawals, while Fidelity’s FETH saw a modest inflow of $4.91 million.

As of Tuesday, Bitcoin was trading at $56,679, down 3.93% in the last 24 hours, while Ether fell 5.44% to $2,377.

Crypto Products Saw $305M in Outflows Last Week

As reported, digital asset investment products faced significant outflows last week, with a total of $305 million exiting the market.

The trend reflects a broader wave of negative sentiment that has gripped the cryptocurrency market across various regions and providers.

The primary catalyst behind this downturn appears to be stronger-than-expected economic data from the United States, which has reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve.

Bitcoin was at the center of this exodus, experiencing outflows totaling $319 million.

However, not all Bitcoin-related products suffered.

Short Bitcoin investment products, which profit from declines in Bitcoin’s price, saw their second consecutive week of inflows, amounting to $4.4 million.

Ethereum, the second-largest cryptocurrency by market capitalization, also saw negative sentiment manifest in outflows, with $5.7 million leaving the market.

Trading volumes for Ethereum stagnated, reaching only 15% of the levels observed during the U.S. ETF launch week.

The week also saw significant price movements in major cryptocurrencies.

Bitcoin closed the week at approximately $57,300, a 10.8% decline from the previous week’s close of around $64,220.

Ethereum also faced a challenging week, closing at around $2,425, down 11.7% from the previous week’s close.