Bitcoin funds see $319 million in outflows as US economic data strengthens

Share this article

Crypto funds saw $305 million in outflows last week, with Bitcoin (BTC) bearing the brunt at $319 million, as reported by CoinShares.

Short Bitcoin funds saw inflows of $4.4 million, the most since March. Ethereum (ETH) faced $5.7 million in outflows, with trading levels in funds reaching just 15% of the levels seen during the week of US exchange-traded funds (ETF) launches, compared to volumes prior to release. Meanwhile, Solana funds attracted inflows of $7.6 million.

The exits are attributed to stronger-than-expected US economic data, reducing the likelihood of a 50 basis point interest rate cut. The asset class is expected to become increasingly sensitive to interest rate expectations as the Federal Reserve approaches a pivot.

Regionally, the US led with $318 million in outflows, followed by Germany and Sweden with $7.3 million and $4.3 million, respectively. Switzerland, Canada, and Brazil saw minor entries of $5.5 million, $13 million, and $2.8 million.

Blockchain stocks bucked the trend with $11 million in inflows, particularly in investment products specific to Bitcoin mining.

US-traded ETF loses $290 million

US-traded spot crypto ETFs lost $290 million last week in interesting moves. IBIT, the spot Bitcoin ETF managed by BlackRock, started the week strong with inflows of $224.1 million on August 26.

Three days later, IBIT saw its second exit since spot Bitcoin ETFs began trading in the US, with $13.5 million in cash leaving the fund. However, its net flows exceeded $210 million.

However, IBIT’s net positive inflows were insufficient to sustain the outflows seen by other funds last week.

ARKB’s ARK 21 shares totaled $221 million in outflows alone, making it the Bitcoin ETF with the largest net negative outflows.

Furthermore, Grayscale’s GBTC added to the outflows with outflows of nearly $120 million, followed by Bitwise’s BITB and Fidelity’s FBTC runaway flows of $56.6 million and $62.7 million, respectively of dollars.

In terms of spot Ethereum ETFs traded in the US, little activity was seen last week. These funds saw $12.4 million in outflows, with Grayscale’s ETHE responsible for all capital fleeing.

On the other hand, BlackRock’s IBIT added $8.4 million to flows on Aug. 28, the only day the fund saw action. Notably, there were no flows on Friday, the first day in the history of US-traded Ethereum ETFs to see no activity.

Share this article