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Bitcoin ETFs See $288M in Continued Outflows as Crypto Market Faces Sell-Off

Bitcoin ETFs See $288M in Continued Outflows as Crypto Market Faces Sell-Off

Bitcoin (BTC) spot exchange-traded funds (ETFs) have experienced their fifth consecutive day of negative flows, with net outflows reaching $287.8 million on September 3. The Grayscale Bitcoin Trust (GBTC) alone saw a significant single-day net outflow of $50.4 million, while Fidelity’s Bitcoin ETF (FBTC) faced an even larger outflow of $162.3 million. These withdrawals have reduced the total net asset value of Bitcoin spot ETFs to $52.7 billion.

Ethereum spot ETFs have also been impacted by the market turbulence. A total net outflow of $47.4 million was recorded, with Grayscale’s Ethereum ETF (ETHE) seeing an outflow of $52.3 million. This was partially offset by a modest inflow of $4.9 million into Fidelity’s Ethereum ETF (FETH). The total net asset value of Ethereum spot ETFs now stands at $6.758 billion.

The broader cryptocurrency market has been under intense selling pressure, with prices plummeting on Wednesday morning following a sharp downturn in the stock market. The plunge occurred shortly after Asian stock markets opened, following a dismal day for U.S. equities, where the Dow Jones Industrial Average fell by 600 points, weighed down by a $300 billion sell-off of Nvidia shares.

Bitcoin dropped by 4.1% over the past 24 hours to $56,600, while Ethereum fell by 4.3% to $2,400. However, crypto markets have since slightly recovered, with BTC bouncing by 1.85% and ETH increasing by 3.44% over the past 24 hours.

Analysts at Fairlead Strategies noted that short-term oversold conditions are present, which could lead to a few days of price stabilization. However, they warned that a breakdown below the $56,500 range could reinforce a short-term bearish outlook. The analysts also pointed out that Bitcoin’s intermediate-term correction remains in effect, with secondary support identified at $49,300.

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