Key Points
- U.S. spot bitcoin ETFs saw net outflows of $287.78 million on Tuesday, the largest since May 1, amid a broader market selloff.
- Spot ether ETFs also faced negative flows, with a total outflow of $47.4 million, marking the most significant daily negative flows since August 2.
Bitcoin ETFs Face Substantial Outflows
On Tuesday, U.S. spot bitcoin exchange-traded funds (ETFs) continued their streak of negative flows, recording net outflows of $287.78 million. This marks the largest negative flow since May 1, according to data from SosoValue. The outflows coincided with a broader market selloff, as Wall Street plummeted on Tuesday following weaker ISM data in the U.S.
Among the 12 spot bitcoin ETFs, Fidelity’s FBTC experienced the largest outflows, with $162.26 million leaving the fund. Grayscale’s GBTC, the second-largest spot bitcoin ETF, saw outflows of $50.39 million. BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, logged zero flows for the day.
Other ETFs also faced outflows:
- Ark and 21Shares’ ARKB: $33.6 million
- Bitwise’s BITB: $24.96 million
- Several other ETFs managed by VanEck, Valkyrie, Invesco, and Franklin Templeton reported modest outflows.
Despite the negative flows, the total trading volume for spot bitcoin ETFs reached $1.56 billion on Tuesday, slightly up from $1.54 billion last Friday. It’s worth noting that the U.S. market was closed on Monday for a holiday.
Ether ETFs Also Face Pressure
Simultaneously, spot ether ETFs in the U.S. recorded net outflows of $47.4 million on Tuesday, marking the most significant daily negative flows since August 2. The Grayscale Ethereum Trust (ETHE) was the primary contributor to these outflows, with $52.31 million leaving the fund.
In contrast, Fidelity’s FETH attracted $4.91 million in net inflows, while seven other spot ether ETFs reported no daily flows. The daily trading volume for ether ETFs decreased to $163.5 million on Tuesday, down from $173.66 million last Friday.
Market Context
The significant outflows in bitcoin and ether ETFs occurred against a broader market selloff. Wall Street experienced a plunge on Tuesday, influenced by weaker ISM data in the U.S. The U.S. ISM manufacturing index for August came in at 47.2%, showing a slight increase of 0.4 percentage points from July.
This market downturn has impacted investor sentiment in the crypto ETF space, leading to substantial outflows across various funds. As the crypto market continues to navigate broader economic uncertainties, investors and analysts will closely monitor these ETF flows as indicators of market sentiment and potential future trends in the digital asset space.
