U.S.-listed spot Bitcoin (BTC) exchange-traded funds (ETFs) faced significant challenges on Tuesday, recording a massive net outflow of $287.8 million—the largest single-day withdrawal since May 1. This downturn was driven by growing concerns over economic growth and a sell-off in Nvidia (NVDA), which negatively impacted overall market sentiment.
The 11 Bitcoin ETFs collectively saw this substantial outflow, with Fidelity’s FBTC leading the way, registering $162.3 million in withdrawals. Grayscale’s GBTC followed with an outflow of $50.4 million, while ARK Invest’s ETF lost $33.6 million and Bitwise’s BITB saw a decrease of $25 million. BlackRock’s IBIT recorded no inflows for the second consecutive trading day.
As a result of the negative sentiment, Bitcoin’s price fell over 2.7% to $57,500 on Tuesday, reversing a previous day’s bounce. The decline was exacerbated by the U.S. ISM manufacturing PMI, which printed below 50, indicating continued contraction in manufacturing activity for August.
This data reignited fears of an economic slowdown, affecting risk assets, including cryptocurrencies.” A miss in the manufacturing PMI rehashed fears of an economic slowdown, with Nvidia leading the sell-off, losing 9.54%,” noted Paradigm, a crypto OTC liquidity network.
At press time, Bitcoin was trading at $56,500, extending overnight losses, while futures tied to the S&P 500 were down 0.4%. The significant outflows from Bitcoin ETFs reflect a broader trend of investors pulling back amid economic uncertainty.
The outflow of $287 million marks the fifth consecutive day of net withdrawals from Bitcoin ETFs, totaling over $750 million since the previous Tuesday. Analysts will be closely monitoring upcoming economic indicators, including job reports, to gauge the potential for further impacts on Bitcoin and other risk assets.
The recent downturn in Bitcoin ETF inflows highlights the ongoing volatility in the cryptocurrency market, driven by macroeconomic factors and investor sentiment.
