US Spot-Bitcoin ETFs See $201.81 Million Outflow, Ending 9-Day Inflow Streak

Net inflows into U.S. spot-Bitcoin exchange-traded funds ended after nine trading days as more than $200 million left the products. The reversal came as Bitcoin fell into the $77,000 range amid concerns that the Federal Reserve could raise interest rates.

Data from SoSoValue showed U.S. spot-Bitcoin ETFs posted combined net outflows of $201.81 million on Aug. 28. That snapped a streak of net inflows that had run from Aug. 17 through Aug. 27.

Ark Invest and 21Shares' ARKB posted the largest outflow at $114.89 million. Bitwise's BITB lost $49.69 million, while BlackRock's IBIT saw $33.40 million in net outflows. VanEck's HODL also shed $13.17 million. By contrast, Morgan Stanley's MSBT took in $9.34 million. The remaining products saw no change in flows.

The buying streak had been strong before the reversal. U.S. spot-Bitcoin ETFs drew a combined $3.044 billion over the nine trading days from Aug. 17 through Aug. 27. On Aug. 20 alone, the funds attracted $606.29 million. The Aug. 28 outflow amounted to about 6.6% of the inflows recorded during the previous nine trading days.

The ETF outflows coincided with a pullback in Bitcoin. The token traded above $81,000 on Aug. 28 before falling as low as $76,888 during the session. The move followed remarks by Fed Chair Kevin Warsh at Jackson Hole warning about inflation, which was seen as increasing the likelihood of a September rate hike.

Still, some of the selling may have reflected profit-taking after Bitcoin climbed quickly from the $64,000 range to around $80,000 during the earlier inflow stretch. Whether ETF money continues to leave the market, and whether Bitcoin holds the $77,000 level, will determine whether institutional demand remains intact.