Significant Outflows from Bitcoin ETFs Amid Economic Concerns

Bitcoin ETFs Experience Significant Outflows Amid Market Concerns

The U.S.-listed spot bitcoin (BTC) exchange-traded funds (ETFs) faced a challenging day on Monday, as concerns regarding economic growth, coupled with a notable sell-off in Nvidia (NVDA), weighed heavily on market sentiment. This led to a staggering cumulative net outflow of $287.8 million across 11 ETFs, marking the largest single-day outflow since May 1, when these funds experienced a significant loss exceeding $500 million, according to data compiled by Farside Investors.

Leading the charge in outflows was Fidelity’s FBTC, which saw withdrawals amounting to $162.3 million. Additionally, Grayscale’s GBTC recorded an outflow of $50.4 million. Other notable losses included BITB and ARK, which lost $25 million and $33.6 million, respectively. The remaining ETFs accounted for the rest of the overall outflow. Notably, BlackRock’s IBIT reported zero inflows for the second consecutive trading day.

As the market reacted, Bitcoin’s price dipped more than 2.7% to settle at $57,500 on Tuesday, effectively reversing the slight recovery seen on Monday. This decline followed the release of the U.S. ISM manufacturing PMI, which printed below the critical threshold of 50, signaling a persistent contraction in economic activity for August. This disappointing data reignited concerns about a potential economic slowdown, impacting risk assets, including cryptocurrencies.

According to the crypto OTC liquidity network Paradigm, “A miss in the manufacturing PMI has rekindled fears of an economic downturn, with Nvidia spearheading the sell-off, suffering a significant loss of 9.54%.” At the time of reporting, BTC was trading at $56,500, extending overnight losses, while futures tied to the S&P 500 were down 0.4%.