U.S. crypto ETFs reversed course Tuesday as bitcoin funds recorded $450.33 million in net outflows, marking their largest single-day exit since June 25. The broad selloff extended to ether ETFs, which lost $141.47 million, while solana ETFs were the sole major category to attract fresh capital with $1.35 million in inflows.
The timing of the withdrawals coincided with two significant developments. The Senate's cloture motion on the Digital Asset Market Clarity Act failed 49-50, falling short of the three-fifths majority needed to advance. Simultaneously, bitcoin's price slipped below $76,000.
Major Bitcoin Fund Redemptions
Fidelity's FBTC led redemptions among bitcoin ETFs with $214.75 million, followed by BlackRock's IBIT at $161.69 million. Grayscale's GBTC shed $44.14 million, while Ark & 21Shares' ARKB and Bitwise's BITB recorded outflows of $17.38 million and $12.36 million respectively. No bitcoin ETF reported inflows during the session.
Bitcoin ETF trading volume jumped to $4.35 billion, though net assets fell by nearly $5 billion to $95.72 billion.
Ether ETFs Under Pressure
Ether ETFs posted $141.47 million in net outflows. BlackRock's ETHA accounted for $97.97 million of the exits, while Bitwise's ETHW lost $34.40 million and Grayscale's ETHE shed $17.47 million. Fidelity's FETH recorded a $7.18 million withdrawal.
Some buying interest remained in ether products. BlackRock's ETHB attracted $12.38 million, and 21Shares' TETH and Morgan Stanley's MSSE added $2.40 million and $776,050 respectively. Ether ETF net assets dropped to $15.42 billion.
Solana and Other Assets
Solana ETFs bucked the broader weakness, with Bitwise's BSOL attracting the category's $1.35 million in inflows. Solana ETF net assets stood at $1.38 billion.
XRP ETFs recorded no net flows, leaving net assets at $1.41 billion. HYPE ETFs lost $3.89 million entirely from Bitwise's BHYP product.
Fed Decision Ahead
Market attention now shifts to the Federal Reserve's decision scheduled for Wednesday. As of early September 16, fed-funds futures implied approximately a 90% probability of a quarter-point rate increase. The Fed is expected to announce its decision at 2 p.m. ET, followed by a press conference at 2:30 p.m.
Long-term borrowing costs remain elevated, with the 10-year Treasury yield trading around 5% ahead of the meeting. For bitcoin, the Fed's forward guidance may prove as influential as the rate decision itself on institutional positioning.
