Bitcoin funds register $643 million in outflows amid record weekly drawdown
Solana goes against the current and adds $6.2 million in weekly inflows, contrasting with its negative monthly flows registered in August.
Key Takeaways
- Digital asset investment products saw $726m in outflows, matching the March 2024 record.
- US-based products experienced the largest outflows at $721m, while European sentiment remained positive.
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Crypto investment products experienced significant weekly outflows totaling $726 million, matching the largest recorded outflow set in March this year, as reported by CoinShares.
The negative sentiment was driven by stronger-than-expected macroeconomic data, which increased the likelihood of a 25-basis-point interest rate cut by the US Federal Reserve next week.
As a result, Bitcoin (BTC) saw outflows totaling $643 million, while short BTC funds saw minor inflows of $3.9 million. Notably, this is the third consecutive week that investors bet against a Bitcoin price rise through short-indexed funds.
Ethereum (ETH) experienced outflows of $98 million, primarily from the incumbent Grayscale Trust. Additionally, inflows from newly issued exchange-traded funds (ETFs) have nearly ceased.
Meanwhile, Solana (SOL) funds managed to grow US$ 6.2 million, after closing August with a negative net flow of US$ 26.7 million.
Regionally, the US led the outflows with $721 million, followed by Canada with $28 million. European sentiment was more positive, with Germany and Switzerland seeing inflows of $16.3 million and $3.2 million respectively.
Moreover, Brazil also added to the positive flows, with $3.9 million in cash flowing to crypto funds last week.
The markets now await Tuesday’s Consumer Price Index (CPI) inflation report, with a 50 basis point cut more likely if inflation falls below expectations.
Massive outflows from Bitcoin ETFs
Spot Bitcoin ETFs traded in the US registered US$ 706 million in outflows last week amid total absence from BlackRock’s IBIT, according to Farside Investors’ data.
The largest Bitcoin ETF by inflows didn’t show activity for the past five trading days or register any inflows for the past eight.
Fidelity’s FBTC was responsible for most of the outflows, with nearly US$ 405 million in cash leaving the fund over the past week.
Notably, Bitwise’s BITB registered the only inflow for the US-traded spot Bitcoin ETFs last week, with $9.5 million flowing to the fund on Sept. 4.
Ethereum ETFs’ lack of action
Aside from the already mentioned continued outflow spree from Grayscale’s ETHE, spot Ethereum ETFs showed little activity last week, data from Farside Investors reveals.
BlackRock’s ETHA came out of a five-day slumber to register $4.7 million in inflows on Sept. 6, while Fidelity’s FETH registered $4.9 million on Sept. 3.
The only other fund showing any signs of life was Grayscale’s Ethereum mini trust ETH, with $10.3 million in inflows registered between Sept. 4 and 5.
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