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

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On the other hand, Grayscale’s GBTC, the second-largest spot Bitcoin ETF, saw $50.39 million withdrawn.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