Key highlights:
- US spot Bitcoin ETFs recorded $430.3 million in net outflows, their largest daily withdrawal since June
- Fidelity’s FBTC led the outflows with $218 million, while BlackRock’s IBIT shed $161.7 million
- The heavy withdrawals came as Bitcoin slid toward $75,000 following the US Senate’s failure to advance the CLARITY Act
US spot Bitcoin ETFs recorded $450.33 million in net outflows on September 15, marking their largest single-day withdrawal since late June. The jarring metric came on the day the US Senate rejected the CLARITY Act, triggering a dip in Bitcoin prices.
Bitcoin ETF outflows accelerate
Fidelity’s FBTC led the September 15 withdrawals with $218 million, followed by BlackRock’s IBIT at $161.7 million. Meanwhile, Grayscale’s GBTC lost $44.1 million, while ARKB and BITB recorded outflows of $17.4 million and $12.4 million, respectively.
Source: SosoValue
Back on June 25, Bitcoin ETFs logged net outflows of $696.29 million, in a month that ended up as the worst for the sector as outflows reached a record peak of $4.5 billion. In the months that followed, inflows surged again, with July and August netting positive inflows for Bitcoin ETFs.
The latest withdrawal forms part of a broader reversal in ETF flows. US spot Bitcoin ETFs had attracted $730.9 million on September 3 and another $174.6 million on September 4, but flows turned negative over the following sessions.
On September 14, the funds attracted $160.04 million, breaking a streak of net outflows that saw the ETFs shed $461 million over four days. However, the September 14 inflows only teed up the markets for a $450.33 million net outflow.
The latest figures put renewed focus on whether the recent ETF weakness represents a short-term risk-off move or a deeper shift in institutional demand for Bitcoin.
Timing of the outflow raises eyebrows
The jarring outflow came on the heels of the US Senate’s failure to advance the CLARITY Act, with the procedural vote falling short of the 60 votes required. The timing has drawn attention because the ETF outflows arrived alongside the legislative setback.
However, the data alone does not establish that the failing legislation caused investors to withdraw capital from the funds. Following the result of the voting session, Bitcoin’s price dipped by nearly 3% to trade at $75,600.
Meanwhile, Bitcoin short-term holders are capitulating, with the cohort moving their holdings to centralized exchanges in preparation for a sell-off. Across the rest of the cryptocurrency ecosystem, altcoins have taken a beating since the CLARITY Act failed to pass the legislative hurdle, with investors adopting a cautious stance toward cryptocurrency ETFs.
For Bitcoin, the immediate question is whether or not the latest ETF withdrawals will develop into a sustained period of institutional selling. While a single day of heavy outflows does not confirm a broader trend, another stretch of negative flows can add pressure to BTC at a time when the market is already dealing with weaker sentiment.