BlackRock’s Spot Bitcoin ETFs Fund IBIT Reports First Negative Flows Since May 1

Spot Bitcoin ETFs recorded net outflows of $71.73 million on August 29, marking the third consecutive day of negative flows.

BlackRock's IBIT, the leading spot Bitcoin ETFs, recorded a surprising downturn. After months of steady growth, the fund logged its first net outflow since May 1, with a total of $13.51 million leaving the fund.

This unexpected development, highlighted by data from SosoValue, suggests a potential shift in investor sentiment.

Bitcoin ETF Outflows Surge

Grayscale's GBTC, another significant player in the Bitcoin ETF space, continued its streak of outflows, seeing $22.68 million exit the fund on Thursday.

Fidelity's FBTC wasn't spared either, recording a substantial $31.11 million in net outflows, reflecting a broader trend of retreating investments across major Bitcoin ETFs.

Bitwise's BITB also faced significant pressure, losing $8.09 million, while Valkyrie's BRRR reported $1.68 million in outflows. These negative flows further added to the overall bearish sentiment surrounding the funds.

However, not everything was bleak in the ETF space. Ark and 21Shares' ARKB bucked the trend, attracting $5.34 million in net inflows.

This positive movement stands in stark contrast to the broader outflow trend. This indicates that some investors still see potential in specific Bitcoin investments despite market turbulence.

The broader impact of these outflows is evident in the daily trading volume of spot Bitcoin ETFs, which saw a sharp decline. The total volume dropped to $1.64 billion on Thursday, down from $2.18 billion the previous day.

According to data from Farside Investors, the Bitcoin spot ETFs have amassed approximately $17.8 billion in net inflows since they started trading on January 11.

Performance of Spot Ethereum ETFs

While Bitcoin ETFs faced significant challenges, the situation wasn't much different for US spot Ethereum ETFs. Following a brief period of inflows the previous day, these funds resumed their pattern of net outflows, with a total of $1.77 million exiting the market.

The Grayscale Ethereum Trust (ETHE) was particularly hard hit, recording $5.35 million in outflows. However, this was partially balanced by $3.57 million in net inflows into the Grayscale Ethereum Mini Trust (ETH), offering hope amid the broader downtrend.

Interestingly, the other seven spot Ethereum ETFs reported no flows on Thursday, showing signs of a temporary stabilization in investor trades.

Meanwhile, the total trading volume for Ethereum ETFs mirrored the decline seen in Bitcoin ETFs, dropping from $151.57 million to $95.91 million.

Amid these fluctuations, the prices of the underlying assets also reflected the broader market sentiment. Bitcoin fell by 0.3% in the last 24 hours, trading at $58,984.

The second largest crypto by market cap, Ether, mirrored Bitcoin's performance. Ethereum (ETH) saw a slight dip of 0.29%, and its price now is slightly over $2,500.

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