On August 2, Bitcoin and Ethereum ETF outflows hit the U.S. market for the first time, signaling a significant shift in the market.
Bitcoin ETFs See $237.4 Million in Outflows
The 11 spot Bitcoin ETFs in the U.S. experienced a net outflow of $237.4 million at the end of trading on Friday, August 2. This marks the largest outflow since early May, when these investment products saw $563.8 million in outflows. Leading the exodus was the Fidelity Wise Origin Bitcoin Fund (FBTC), which lost $104.1 million, followed by Ark and 21Shares’ ARKB with $87.7 million in outflows.
Grayscale’s GBTC continued its downward trend, losing $45.9 million, while Bitwise’s BITB and VanEck’s HODL saw outflows of $29.4 million and $23 million, respectively. On a brighter note, BlackRock’s IBIT and Grayscale’s newly launched Grayscale Bitcoin Mini Trust recorded inflows of $42.8 million and $9.9 million, respectively. Other spot BTC ETFs remained neutral.
Overall, the week ended on a negative note, with total withdrawals from all spot BTC ETFs amounting to approximately $80.68 million. According to SoSoValue data, the total daily trading volume for these instruments was $2.34 billion on August 2, down from $2.91 billion on August 1, but still significantly higher than the $1.37 billion recorded on July 31.
Ethereum ETFs Log $54.3 Million in Outflows
On the same day, the nine U.S. spot Ethereum ETFs recorded a net outflow of $54.3 million, led by Grayscale’s ETHE, which saw $61.4 million in outflows. Fidelity’s FETH and Franklin’s EZET were the only ETFs to record inflows, at $6 million and $1.1 million, respectively, which were not enough to offset the overall losses. The remaining Ether ETFs saw no net flow that day.
The past week was particularly harsh for ETH ETFs, with total withdrawals reaching $169.4 million over the last five trading days. SoSoValue reported that the total daily trading volume for these spot Ethereum ETFs was $438.61 million on August 2, higher than the $331.11 million on August 1, but lower than the $472.5 million on July 31.
The joint outflows from spot BTC and ETH ETFs on August 2 marked a reversal from the scenario on August 1, when both ETF products saw joint positive inflows for the first time since the launch of the nine spot Ether ETFs on July 23.
Market Impact and Broader Trends
These outflows coincided with a 4.5% drop in the global cryptocurrency market cap over the last 24 hours, according to CoinGecko data. Bitcoin’s price decreased by 4.4%, settling at $62,000, while Ethereum saw a larger decline of 5%, trading at approximately $3,000.
The recent outflows underscore the volatile nature of the cryptocurrency market and the shifting investor sentiment. As the market continues to evolve, these developments will likely influence future trends and investment strategies.
Conclusion
The simultaneous outflows from U.S. spot Bitcoin and Ethereum ETFs on August 2 reflect a significant market movement and highlight the need for investors to stay informed and adaptable. As the cryptocurrency landscape continues to change, monitoring these trends will be crucial for making informed investment decisions.
