Bitcoin ETFs in the U.S. See Largest Outflow in Four Months

Spot Bitcoin ETFs listed in the United States witnessed the largest outflow in four months on Tuesday as it bled $287.8 million. 

Key Takeaways

• It was the fifth day in a row that Bitcoin ETFs saw a negative flow in a single trading day.
   
• Fidelity's ETF was the worst performer on the day, with $162.3 million in negative flow.
   
• All the 11 Bitcoin ETFs bled $767.6 million over the last five trading days. 

All the 11 Bitcoin (BTC) exchange-traded funds (ETFs) listed on the U.S. charts saw a net outflow of $287.8 million on 3rd September. 

Image: Bitcoin ETF Flow – All Data (US$m), Farside Investors 

• The figure is the largest in the last four months.
• Overall, it is the third largest outflow in the history of spot Bitcoin ETFs in the U.S.
• Previously, spot Bitcoin ETFs saw negative flows of $326.2 million on 19th March and $563.7 million on 1st May. 

Yesterday, the spot Bitcoin ETFs of Fidelity and Grayscale witnessed net outflows of $162.3 million and $50.4 million respectively.

BlackRock's ETF recorded zero flow for two trading days in a row.

Currently, the total net asset value of spot Bitcoin ETFs stands at $52.7 billion as per SoSoValue. The figure is 4.59% of Bitcoin’s market cap.  
 

We can attribute the latest negative flow to concerns about growth and the massive Nvidia (NVDA) sell-off.

The Manufacturing purchasing managers' index (PMI) registered 47.2% in August, much below 50%.

It is a monthly indicator of economic activity based on a survey. 

• Economic activity in the manufacturing sector contracted in August for the fifth month in a row and the 21st time in the last 22 months.
   
• The latest data again ignited concerns about growth in the U.S. 

Next, Nvidia suffered a record loss of $279 billion on 4th September as the U.S. Department of Justice (DoJ) sent subpoenas to Nvidia and other firms concerning the alleged antitrust violations.

• The NVDA stock fell 9.45% yesterday. Overall, Nvidia’s loss stood at 12% within three days of the release of its earnings report, which disappointed the market. 

   

• It was the worst single day fall for the U.S. stock market, with a decline of $1.2 trillion.

The stock market crash led to a rout on the crypto market too: both Bitcoin and Ethereum (ETH) fell by 4% to $56.6K and $2.4K. 

Image: Total Crypto Market Cap Chart, by CoinGecko

The global crypto market cap declined by 0.76% within a day to $2.08 trillion.

We will be keeping a watch on how the markets recover from the latest shock.