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US Spot Bitcoin ETFs Record Significant Fund Outflows on Tuesday

Sep 4, 2024
  1. Largest Outflows Among Bitcoin ETFs
  2. Market Reaction and Reasons
  3. Ethereum ETF Outflows

US spot Bitcoin ETFs recorded significant fund outflows on Tuesday, extending a streak of negative flows in the cryptocurrency market.

Largest Outflows Among Bitcoin ETFs

According to SosoValue data, 12 spot Bitcoin ETFs experienced net outflows totaling $287.78 million, marking the largest single-day outflow since May 1. Among ETFs, BlackRock's IBIT, the largest spot Bitcoin ETF by net assets, reported no inflows or outflows during the day. The second-largest spot Bitcoin ETF, Grayscale’s GBTC, saw $50.39 million in outflows, while Fidelity’s FBTC ETF took the biggest hit with $162.26 million in net outflows. Other ETFs also felt the impact of the market downturn, with Ark and 21Shares’ ARKB reporting $33.6 million in outflows and Bitwise’s BITB seeing $24.96 million in withdrawals. Several other ETFs managed by VanEck, Valkyrie, Invesco and Franklin Templeton also saw modest outflows.

Market Reaction and Reasons

The outflows coincided with a broader market sell-off, with Wall Street falling on Tuesday following the release of weaker-than-expected ISM manufacturing data. The US ISM manufacturing index for August was 47.2%, up slightly by 0.4 points from July but still indicating contraction in the sector. Despite the sell-off, trading volume for spot Bitcoin ETFs remained relatively steady, totaling $1.56 billion on Tuesday, slightly more than $1.54 billion last Friday. The U.S. market was closed on Monday for a holiday.

Ethereum ETF Outflows

The outflows were not limited to Bitcoin ETFs; U.S. spot Ethereum ETFs also pulled back significantly. On Tuesday, these ETFs recorded net outflows of $47.4 million, the largest daily outflows since Aug. 2. Grayscale’s Ethereum Trust (ETHE) led the outflows among Ethereum ETFs with $52.31 million withdrawn, while Fidelity’s FETH ETF bucked the trend with net inflows of $4.91 million. Seven other spot Ether ETFs reported no activity during the day. Trading volume for these Ethereum ETFs fell from $173.66 million last Friday to $163.5 million on Tuesday.

In summary, the significant fund outflows from US spot Bitcoin and Ethereum ETFs reflect current market sentiments and the influence of macroeconomic factors.

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