Bitcoin ETFs saw heaviest outflows in four months on Tuesday as crypto prices plunged

Spot bitcoin exchange-traded funds (ETFs) experienced significant outflows on Tuesday, along with a broader market selloff. Over $287 million was withdrawn from the 11 U.S.-listed ETFs, marking the biggest day for outflows since May 1. The decline in enthusiasm for bitcoin ETFs in recent months is attributed to their underwhelming performance following their debut. Currently, spot bitcoin funds hold around $52.6 billion in assets, down $10 billion from their peak. The drop in the price of bitcoin, which reached a record high in March, has contributed to this decline. Spot ether ETFs have also faced challenges recently, experiencing outflows after a drop in the cryptocurrency’s value. The total assets of spot funds have decreased from $10.2 billion in July to around $6.7 billion. Institutional ownership of bitcoin ETFs has risen to 24% by the end of the second quarter, according to disclosures with the SEC. Goldman Sachs entered the crypto ETF market by purchasing $418 million worth of bitcoin funds, while Morgan Stanley decreased its holdings of spot bitcoin ETFs.