Spot bitcoin ETFs experienced significant outflows on Tuesday, with U.S. investors withdrawing a total of $287.78 million from various funds. BlackRock's IBIT, the largest spot bitcoin ETF, reported no notable flows for the day, while Grayscale's GBTC saw withdrawals of $50.39 million. Fidelity's FBTC faced the heaviest losses, with $162.26 million flowing out of the fund.
more-funds-see-outflows">more Funds See Outflows
Other notable outflows included funds like ARKB from Ark and 21Shares, which experienced $33.6 million in withdrawals, and BITB from Bitwise, which saw $24.96 million leave the fund. Additionally, ETFs managed by VanEck, Valkyrie, Invesco, and Franklin Templeton also reported smaller outflows during the day.
The outflows coincided with a downturn in Wall Street, triggered by weaker-than-expected U.S. manufacturing data. The manufacturing index for August, as reported by the Institute for Supply Management (ISM), came in at 47.2%, indicating contraction and contributing to market uncertainties.
Despite the market challenges, spot bitcoin ETF trading volume reached $1.56 billion on Tuesday, showing resilience in trading activity. This volume was slightly higher than the $1.54 billion recorded last Friday, even with the U.S. market closed on Monday for a holiday.
Not only did bitcoin-focused ETFs experience outflows, but U.S. spot Ether ETFs also saw investors withdrawing $47.4 million from the market on the same day. This outflow marked the largest single-day withdrawal since August 2.
The Grayscale ethereum Trust (ETHE) saw the largest outflows among Ether ETFs, with withdrawals amounting to $52.31 million. On the other hand, Fidelity's FETH witnessed modest inflows of $4.91 million amidst the market movements.
As of Tuesday, bitcoin was trading at $56,679, marking a 3.93% decrease over the past 24 hours, while Ether fell 5.44% to $2,377, reflecting the overall volatility in the cryptocurrency market.
crypto-products-saw-305m-in-outflows-last-week">crypto Products Saw $305M in Outflows Last Week
Digital asset investment products faced significant outflows last week, totaling $305 million across various offerings in the market. This trend mirrors the negative sentiment prevailing in the cryptocurrency space globally and underscores the challenges faced by investors.
The negative sentiment was largely influenced by stronger-than-expected economic data from the United States, which reduced the likelihood of an interest rate cut by the Federal Reserve. This shift in expectations impacted investor decisions in the cryptocurrency market, leading to significant outflows.
bitcoin bore the brunt of the outflows, with a total of $319 million leaving bitcoin-related products. However, short bitcoin investment products, designed to profit from price declines, saw inflows for the second consecutive week, amounting to $4.4 million.
ethereum also felt the impact of negative sentiment, with $5.7 million exiting Ether-related products during the period. Trading volumes for ethereum stagnated, reaching only 15% of the levels observed during the ETF launch week in the U.S.
The market movements also reflected in the prices of major cryptocurrencies, with bitcoin closing the week around $57,300, marking a 10.8% decline from the previous week. Similarly, ethereum closed at approximately $2,425, down 11.7% from the previous week, highlighting the challenges faced by digital assets amid shifting market dynamics.
