In recent updates, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced their largest outflows since May 1, with net outflows reaching $287.78 million on Tuesday. This was primarily due to BlackRock’s IBIT, the largest spot Bitcoin ETF, reporting no significant flows for the day. Grayscale’s GBTC, the second-largest spot Bitcoin ETF, saw $50.39 million withdrawn, and Fidelity’s FBTC faced the heaviest losses with $162.26 million in outflows.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 in the spot Bitcoin ETF market came as Wall Street experienced 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%, indicating contraction in the industry. 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. Similarly, 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.
On September 3, the total net outflow of Ethereum spot ETF was $47.3994 million. The Grayscale Ethereum Trust (ETHE) saw the biggest outflow of $52.31 million, while Fidelity’s FETH had a modest inflow of $4.91 million. By Tuesday, Bitcoin was trading at $56,679, down 3.93% in the last 24 hours, and Ether fell 5.44% to $2,377. Cryptocurrency products experienced $305 million in outflows last week, reflecting a broader wave of negative sentiment in the market. Stronger-than-expected economic data from the United States reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve, causing investors to pull out funds.
Bitcoin saw significant outflows totaling $319 million, but short Bitcoin investment products, which profit from declines in Bitcoin’s price, saw inflows of $4.4 million. Ethereum also experienced negative sentiment, 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. Major cryptocurrencies like Bitcoin and Ethereum faced price drops, with Bitcoin closing the week at around $57,300, a 10.8% decline from the previous week, and Ethereum closing at approximately $2,425, down 11.7% from the previous week.
