Fidelity Bitcoin ETF loses $43.7M as total outflows reach $236.5M

Investors withdrew $43.7 million from Fidelity’s spot Bitcoin exchange-traded fund [ETF] on 1 September, adding to a wider reversal that was seen across the US market.

The Fidelity Bitcoin outflow was notable, but it was not the largest that was seen on the day, BlackRock’s fund accounted for most of the $236.5 million that left spot Bitcoin ETFs during the session.

Fidelity Bitcoin fund records first September outflow

Fidelity’s Wise Origin Bitcoin Fund [FBTC] started September with $43.7 million in net withdrawals, according to Farside Investors data.

What the data showed was that more money was withdrawn from the fund than invested during that session, but this does not mean Fidelity itself sold Bitcoin because it had turned against the asset. ETF flows reflect decisions made by investors who buy and sell shares in the fund.

The latest withdrawal also followed an up-and-down end to August. FBTC attracted $6.9 million on August 31 after recording an $83.6 million outflow on August 27.

But despite the withdrawals observed, the overall flow remains positive, with FBTC having seen about $10.21 billion in net inflows overall.

BlackRock drove most of the ETF decline

BlackRock’s iShares Bitcoin Trust [IBIT] recorded a much larger $201.2 million outflow on September 1. Bitwise’s BITB was the only fund to finish the session with an inflow, adding $8.4 million.

The remaining funds reported no net movement.

The negative session came one day after spot Bitcoin ETFs collectively saw an inflow of $216.7 million. On both days, the funds recorded a relatively modest net withdrawal of about $19.8 million.

On 1 Sep weak demand is apparent but only on one trading day, which does not imply that institutions are leaving.

Spot Bitcoin ETFs have witnessed nearly $54.68 billion in net inflows after the products have been launched. But whether the latest ETF withdrawal can trigger a longer trend of liquidation would depend on how the funds fare for the next few days.

Final Summary

• Fidelity’s Bitcoin ETF recorded a $43.7 million outflow, while BlackRock led withdrawals with $201.2 million.
• This has brought total outflows for yesterday to $236.5 million, reducing most of the positive figures in the previous session when it saw inflows total $216.7 million.