US Bitcoin ETFs hit 7-day losing streak, outflows surpass $1 billion

US Bitcoin ETFs continued their losing streak for seven consecutive trading days, resulting in net outflows exceeding $1 billion between August 27 and September 5. This data from Farside Investors indicates a significant capital exit, primarily led by Fidelity’s Wise Origin Bitcoin Fund (FBTC) rather than Grayscale’s Bitcoin ETF (GBTC). FBTC saw approximately $374 million leaving the fund during this period, while GBTC experienced $227 million in outflows. The largest Bitcoin ETF, BlackRock’s iShares Bitcoin Trust (IBIT), also faced its second-ever outflow since its launch in January, with investors withdrawing $13.5 million on August 29. This minor downturn contrasts with the fund’s previous performance, which had consistent inflows leading up to this stagnation. Other US Bitcoin ETFs, excluding WisdomTree’s Bitcoin Fund (BTCW), also reported losses without notable capital inflows during this period. Consequently, Bitcoin’s recent price decline has been further impacted by these ETF outflows, occurring amid growing market uncertainty globally. On Thursday alone, there was a substantial net outflow of $211 million from US Bitcoin funds, marking the fourth-highest daily outflow since May 1. Bitcoin’s price struggles to surpass the $65,000 resistance level, resulting in continued selling pressure. While long-term Bitcoin investors remain profitable, short-term holders are encountering difficulties in the current market conditions. Additionally, the fear and greed index reflects widespread concerns about a potential recession, firmly placing Bitcoin in the fear territory. As a result, Bitcoin’s price has declined by over 4% in the past week and is currently trading around $56,500.