The U.S. spot Bitcoin exchange-traded funds (ETFs) recently experienced a significant outflow of $287.78 million, marking the largest outflow since May 1. BlackRock’s IBIT, the largest spot Bitcoin ETF by assets, reported no significant flows on the same day. However, Grayscale’s GBTC, the second-largest spot Bitcoin ETF, saw a withdrawal of $50.39 million, while Fidelity’s FBTC faced the heaviest losses with $162.26 million in outflows. Other notable outflows came from 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 were seen across the board as Wall Street experienced a significant downturn driven by weaker-than-expected U.S. manufacturing data. The Institute for Supply Management (ISM) manufacturing index for August came in at 47.2%, below the 50% mark, indicating contraction. Despite the U.S. market being closed on Monday for a holiday, spot Bitcoin ETF trading volume reached $1.56 billion on Tuesday, slightly up from $1.54 billion last Friday. U.S. spot Ether ETFs also recorded outflows, with $47.4 million leaving the market on Tuesday, the largest single-day outflows since August 2.
The Grayscale Ethereum Trust (ETHE) faced the brunt of the outflows with $52.31 million withdrawn, while Fidelity’s FETH saw a modest inflow of $4.91 million.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. Last week, digital asset investment products saw significant outflows totaling $305 million, reflecting a broader negative sentiment in the cryptocurrency market. The stronger-than-expected economic data from the United States has reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve.
Bitcoin experienced outflows totaling $319 million, but short Bitcoin investment products saw inflows amounting to $4.4 million. Ethereum also saw outflows of $5.7 million, with trading volumes stagnating at only 15% of the levels observed during the U.S. ETF launch week. Both Bitcoin and Ethereum faced price declines, with Bitcoin closing the week at approximately $57,300, a 10.8% decline from the previous week, and Ethereum closing at around $2,425, down 11.7% from the previous week’s close. The negative sentiment in the market reflects the ongoing uncertainty in the cryptocurrency space.
