Bitcoin ETFs see $287M outflow amid economic slowdown concerns

Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) in the U.S. experienced significant outflows on Monday as concerns over economic growth and a market sell-off impacted investor sentiment. 

The 11 U.S.-listed spot Bitcoin ETFs recorded a cumulative outflow of $287.8 million on Tuesday, marking the largest single-day outflow since May 1, when over $500 million was withdrawn, according to Farside Investors. 

The outflows were led by Fidelity’s FBTC, which saw $162.3 million in withdrawals. 

Grayscale's GBTC followed with an outflow of $50.4 million, while ARK and BITB lost $33.6 million and $25 million, respectively. 

The remaining ETFs accounted for the rest of the total outflow. 

BlackRock’s IBIT ETF recorded zero inflows for the second consecutive trading day, highlighting a cautious approach by investors. 

Bitcoin’s price declined by over 2.7% to $57,500 on Tuesday, reversing the gains seen on Monday. 

The drop followed the release of the U.S. ISM Manufacturing Purchasing Managers' Index (PMI), which came in below 50, signaling a continued contraction in the sector for August. 

The weaker-than-expected PMI figures revived fears of an economic slowdown, leading to a sell-off in risk assets, including cryptocurrencies. 

The market sentiment was further impacted by a sharp decline in tech stocks, with Nvidia leading the sell-off, dropping 9.54%. 

"A miss in the manufacturing PMI rehashed fears of an economic slowdown," stated Paradigm, a crypto OTC liquidity network, in a broadcast message on Telegram. 

The current economic concerns have led to cautious behavior among investors, impacting both traditional and digital assets. 

With volatility expected to continue, market participants are closely monitoring economic indicators for further clues about the direction of Bitcoin and other risk assets in the near term.

At the time of reporting, the Bitcoin (BTC) price was $56,298.68.