Spot Bitcoin and Ethereum exchange-traded funds (ETFs) faced significant outflows on Tuesday.
Record Outflows from Spot Bitcoin and Ethereum ETFs in the U.S.
According to SoSoValue data, there was a total net outflow of $523 million from spot Bitcoin ETFs and $422 million from spot Ethereum ETFs. This indicates that institutional investors are repositioning their portfolios ahead of upcoming macroeconomic developments.
On the Bitcoin side, the largest outflow was from Fidelity's FBTC fund at $246.9 million, while Grayscale GBTC recorded a net outflow of $115.5 million.
BlackRock's IBIT fund reported zero inflows during the day. On the Ethereum side, the outflows were led by Fidelity's FETH fund ($156.3 million) and Grayscale ETHE ($122 million). This marks the second largest daily outflow since the launch of spot Ethereum ETFs.
BTC Markets analyst Rachael Lucas noted that the outflows could be related to investors taking profits or a cash/bond rotation, and that strong dollar and inflation concerns triggered a flight from risk.
According to the data, the price of Bitcoin fell 1.57% to $112,500 in the last 24 hours, while Ethereum declined 1.54% to $4,060. Lucas emphasized that ETF outflows have created selling pressure in the spot markets in the short term, but that ETFs have structural significance in crypto pricing in the long term.
According to the analyst, the Fed minutes and Powell's speech at Jackson Hole, to be announced this week, will play a critical role in determining the direction of market flows.