Spot Bitcoin ETFs See Largest Outflows Since May, Totaling $287M

U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a significant withdrawal of funds on Tuesday, with outflows totaling $287.78 million—the largest since May 1. According to data from SosoValue, BlackRock’s IBIT, the largest spot Bitcoin ETF by assets, saw no major movements, but other ETFs faced notable losses.

Grayscale’s GBTC, the second-largest spot Bitcoin ETF, reported withdrawals of $50.39 million. Fidelity’s FBTC was hit the hardest, with $162.26 million in outflows. Other funds, including Ark and 21Shares’ ARKB and Bitwise’s BITB, saw outflows of $33.6 million and $24.96 million, respectively.

The outflows coincide with broader market declines, driven by weaker-than-expected U.S. manufacturing data. The Institute for Supply Management (ISM) reported an August manufacturing index of 47.2%, signaling continued contraction and impacting investor sentiment.

U.S. spot Ether ETFs also experienced significant outflows, with $47.4 million leaving the market, led by Grayscale’s Ethereum Trust (ETHE), which saw $52.31 million in withdrawals.

Overall, digital asset investment products faced outflows of $305 million last week, reflecting a broader negative sentiment across the crypto market. Stronger-than-expected U.S. economic data has diminished the chances of a Federal Reserve interest rate cut, further fueling the downturn.