In a stark reversal from previous weeks of inflows, US-listed spot Bitcoin exchange-traded funds (ETFs) experienced a substantial outflow of $287 million on September 3, leading to a price drop with Bitcoin trading around the $56,000 mark. This trend mirrors the recent performance of Ethereum-linked ETFs, which also saw consecutive days of outflows, with ETH shedding about 5% of its value in the last 24 hours.
Data from Sosovalue indicates that Bitcoin ETFs have faced a continuous outflow for five consecutive days, amounting to a loss exceeding $765 million since August 27. Before this downturn, these ETFs enjoyed a sustained period of inflows for eight days. The largest single-day withdrawal on record for this year occurred on September 3, with a staggering $287 million pulled from Bitcoin ETFs. Fidelity’s FBTC saw the most significant withdrawal of $162.3 million, followed by Grayscale’s GBTC which experienced an outflow of $50.4 million.
These ETF withdrawals have exerted additional downward pressure on BTC prices. According to market data, Bitcoin’s price fell by 4% in the past 24 hours, reaching as low as $55,000 before slightly recovering to around $56,770. The trading volume for Bitcoin surged by 31%, totaling $33 billion. Coinglass reported that liquidations in the past 24 hours reached $55 million, with the majority comprising long positions, indicating traders’ unexpected reaction to the selling pressure.
Similarly, the newly launched spot Ether ETFs faced a challenging debut month, recording $476 million in outflows. The significant shift of funds was partly due to Grayscale’s ETHE conversion from a trust to an ETF, which unlocked previously restricted assets leading to substantial outflows. ETHE’s assets notably reduced from $10 billion to $4.7 billion, affecting the overall stability of Ether’s market.