As the crypto market plunged on Wednesday, Bitcoin spot ETFs marked their fifth consecutive day of negative flows, with
$287.8 million in net outflows on September 3.
Significant Outflows for Major Bitcoin ETFs
The Grayscale Bitcoin Trust (GBTC) ETF reported a single-day net outflow of
$50.4 million, while Fidelity's FBTC saw an even larger outflow of
$162.3 million. These outflows have reduced the total net asset value of Bitcoin spot ETFs to
$52.7 billion, according to data from SoSo Value.
Ethereum spot ETFs also recorded a total net outflow of
$47.4 million, with Grayscale’s ETHE ETF experiencing a
$52.3 million outflow, partially offset by Fidelity’s FETH, which had an inflow of
$4.9 million. The current total net asset value of Ethereum spot ETFs stands at
$6.758 billion, data shows.
Crypto Market Faces Sell-Offs
The crypto market faced significant selling pressure, with cryptocurrency prices dropping on Wednesday following a stock market rout. Bitcoin (BTC) dropped
4.1% to
$56,600, and Ethereum (ETH) slumped
4.3% to
$2,400.
These outflows and price declines have triggered substantial market liquidations, totaling
$198.85 million across the crypto market, according to Coinglass data. Long positions accounted for
$168.38 million of the liquidations, while short positions made up
$30.47 million.
Broader Market Impact
Kristian Haralampiev, Structured Products Lead at Nexo, told Decrypt that the market drop was likely triggered by a sharp
$300 billion Nvidia selloff, raising concerns over whether the Fed's "soft landing" could lead to a more abrupt downturn in tech and digital assets.
Haralampiev added that with mining difficulty at an all-time high and block rewards halved, miners may strategically sell their Bitcoin holdings, driving up market prices. In the short term, this could help Bitcoin recover, but long-term success may depend on its status as a tradable reserve asset.
Read more at Decrypt.
