US Crypto ETFs Suffer Major Outflows in August

U.S. spot Bitcoin and Ethereum ETFs kicked off August with a significant downturn, losing nearly $1 billion in combined value as market prices fell. On Friday, Bitcoin funds recorded outflows totaling $812.3 million, marking their worst day since February 24, when they shed $1.1 billion. This was also their second-largest outflow day in history. Notably, BlackRock's IBIT fund, leading the industry, reported minimal losses of $2.6 million, whereas Fidelity's FBTC and Ark & 21 Shares’ ARKB each saw around $330 million in outflows. The ETF offerings from Grayscale and Bitwise also lost tens of millions, with no funds gaining inflows on that day. Data from The Block indicates that BlackRock’s IBIT fund remains significantly larger than its closest rival, FBTC, in assets under management. This downturn follows an extraordinary month in July, where the funds averaged $600 million in inflows daily. Nate Geraci, president of NovaDius Wealth, commented on X, stating, "An odd way to end what was perhaps the most important week *ever* for crypto, at least from a regulatory standpoint." Ethereum ETFs in the U.S. faced a similar fate, with total outflows of $152.3 million on Friday, marking their worst day since January 7's $159.3 million loss. This day ranked fourth-worst in the history of Ethereum funds according to SoSoValue data. BlackRock's leading Ethereum fund, ETHA, remained neutral with no significant inflows or outflows, while Bitwise's ETHW suffered the largest outflows of $40.3 million, followed by Grayscale's ETHE, which lost $37.2 million. Looking ahead, fund issuers are seeking approval to launch spot Solana ETFs, having submitted several amended filings last week. Recently, Rex-Osprey introduced the first staked crypto ETF in the U.S., utilizing a savvy regulatory strategy. Disclaimer: The Block is an independent media organization that provides news and data. As of November 2023, Foresight Ventures is a majority investor in The Block, which maintains its independence in reporting.