Spot Bitcoin ETF Outflows Hit Highest Since May 1, At $287M
Date: 2024-09-05 Author: Henry Casey Categories: CRYPTO PAYMENTS
U.S. spot Bitcoin ETFs saw their biggest outflows since May 1, with a net outflow of $287.78 million on Tuesday.
BlackRock's IBIT spot Bitcoin ETF, the largest by assets, saw no significant inflows on the day, according to SosoValue.
On the other hand, Grayscale’s GBTC, the second-largest spot Bitcoin ETF, lost $50.39 million.
Fidelity’s FBTC suffered the biggest losses, with outflows of $162.26 million.
Other funds also saw outflows
Other notable outflows included Ark and 21Shares’ ARKB, which saw withdrawals of $33.6 million, and Bitwise’s BITB, which saw $24.96 million.
In addition, ETFs managed by VanEck, Valkyrie, Invesco, and Franklin Templeton also reported smaller outflows.
The outflows came amid a significant decline on Wall Street, driven by weak U.S. manufacturing data.
The Institute for Supply Management (ISM) Manufacturing PMI for August was 47.2%, up slightly from July but still below the 50% mark, indicating contraction.
Spot Bitcoin ETF trading volume reached $1.56 billion on Tuesday, up slightly from $1.54 billion last Friday, despite the U.S. market being closed for a holiday on Monday.
Meanwhile, U.S. spot Ether ETFs also saw outflows, with $47.4 million leaving the market on Tuesday, the largest daily outflow since August 2.
Grayscale Ethereum Trust (ETHE) saw the biggest losses, losing $52.31 million, while Fidelity’s FETH saw a small inflow of $4.91 million.
As of Tuesday, Bitcoin was trading at $56,679, down 3.93% over the past 24 hours, while Ether was down 5.44% to $2,377.
Crypto Products See $305 Million in Outflows Last Week
As reported, digital asset investment products saw significant outflows last week, with a total of $305 million leaving the market.
The trend reflects a broader wave of negative sentiment sweeping the crypto market across regions and providers.
The main reason for the decline appears to have been stronger-than-expected economic data from the U.S., which reduced the likelihood of a 50 basis point Federal Reserve rate cut.
Bitcoin was at the center of this outcome, recording outflows of $319 million.
Not all Bitcoin-related products suffered, however.
Investment products targeting the decline in the price of Bitcoin recorded a second consecutive weekly inflow, totaling $4.4 million.
Ethereum, the second-largest cryptocurrency by market cap, also saw negative sentiment, resulting in outflows of $5.7 million.
Ethereum trading volumes remained at just 15% of what they were the week of the U.S. ETF launch.
The week also saw significant price swings in major cryptocurrencies.
Bitcoin closed the week at around $57,300, down 10.8% from the previous week's close of around $64,220.
Ethereum also had a rough week, closing at around $2,425, down 11.7% from the previous week.
