bitcoin spot ETFs have experienced significant outflows over the past few days, with investors pulling out approximately $168 million from nine U.S. spot bitcoin exchange-traded funds (ETFs) on Monday alone. This trend continued in the following days, leading to a total net outflow of $405 million. In contrast, spot ethereum ETFs saw net inflows totaling nearly $49 million during the same period.
Grayscale’s GBTC and Fidelity’s FBTC Witness Withdrawals
The most prominent outflows were observed from Grayscale’s bitcoin ETF (GBTC) and Fidelity’s bitcoin fund (FBTC), both experiencing withdrawals of around $69 million each. Interestingly, Grayscale’s bitcoin Mini Trust (BTC) saw the highest daily inflows, attracting almost $29 million. Bitwise’s bitcoin ETF (BITB) and Valkyrie’s bitcoin fund (BRRR) also recorded gains, each garnering approximately $6 million in inflows. On the other hand, BlackRock’s iShares bitcoin Trust (IBIT) reported no flows.
On the trading front, U.S. bitcoin and ethereum ETFs saw a combined trading volume of nearly $6 billion on Monday. Spot bitcoin ETFs alone accounted for over $5 billion of this total, with IBIT and FBTC leading the trading activity. Spot ethereum ETFs, driven by Grayscale’s ethereum ETF and BlackRock’s iShares ethereum Trust (ETHA), contributed approximately $715 million to the overall trading volume.
Eric Balchunas, an ETF analyst at Bloomberg, pointed out that high trading volume during a market downturn indicates market fear. He emphasized the importance of deep liquidity during such times, highlighting the long-term benefits for ETFs.
BlackRock’s ETH ETF Attracts Inflows
Meanwhile, BlackRock’s ETHA recorded net inflows of $47 million on August 5, followed by VanEck’s and Fidelity’s ethereum ETFs, which collectively attracted nearly $33 million. Bitwise’s ethereum fund and Grayscale’s ethereum Mini Trust also reported gains on the same day. However, the Grayscale ethereum Trust (ETHE) faced significant outflows, with nearly $47 million withdrawn marking the lowest outflow since its conversion to an ETF. Over ten trading days, the fund witnessed outflows exceeding $2.1 billion.
Despite the market turmoil triggered by Jump Trading's substantial Ether transfer to exchanges, both bitcoin and ethereum have shown signs of recovery. bitcoin has partially climbed back to around $54,000, while ethereum has rebounded by 6%, currently trading at over $2,400 according to CoinGecko's data.
The recent outflows from digital asset investment products, totaling $528 million amid recession fears in the United States, reflect growing concerns among investors. The Bank of Japan's decision to raise interest rates for the first time in 17 years due to the weakening purchasing power of the Yen against the US Dollar has also contributed to apprehension within risk-on asset markets.
