U.S.-listed crypto ETFs returned from the Labor Day holiday with approximately $58.7 million in combined net outflows on Tuesday, led by withdrawals from Bitcoin and Hyperliquid funds as cryptocurrency markets retreated. Bitcoin spot ETFs recorded $46.65 million in net outflows, according to SoSoValue data, reversing the strong institutional demand seen during the previous trading sessions.
Hyperliquid ETFs lost another $12.96 million, while Solana products recorded a smaller $668,000 outflow. Ethereum ETFs were flat, while XRP was the only major category tracked to attract fresh capital, recording approximately $1.55 million in net inflows.
The reversal followed Friday’s $205.8 million combined inflow across Bitcoin, Ethereum, Solana, XRP and Hyperliquid ETFs.
GBTC Drives Bitcoin Back Into Outflows
Grayscale’s GBTC was responsible for the largest Bitcoin withdrawal, losing $65.51 million during the session. Fidelity’s FBTC followed with $17.05 million of outflows, while Invesco’s BTCO lost another $4.68 million. Those redemptions overwhelmed inflows elsewhere.
Bitwise’s BITB attracted $14.47 million, BlackRock’s IBIT added $10.66 million, ARK 21Shares’ ARKB received $8.06 million and Morgan Stanley’s MSBT added $7.41 million. The result was Bitcoin ETFs’ first net outflow following their latest run of positive sessions. Friday had produced $174.6 million of Bitcoin inflows, driven entirely by BlackRock’s $117.4 million and Fidelity’s $57.2 million.
September 3 was substantially stronger, generating approximately $730.8 million as BlackRock alone attracted $454 million. Tuesday’s reversal coincided with weakness in Bitcoin itself. The cryptocurrency fell below $79,000 during the session after reaching a three-month high above $82,000 last week, as investors turned cautious ahead of the Federal Reserve’s September 15-16 policy meeting.
HYPE Loses $13 Million While XRP Adds Capital
Hyperliquid ETFs experienced the largest percentage reversal among the smaller crypto ETF categories. HYPE products recorded $12.96 million of net outflows after attracting $10.5 million during Friday’s session. Bitwise’s BHYP lost approximately $8.06 million, while 21Shares’ THYP recorded another $4.89 million of withdrawals. Solana ETFs extended their losing streak with $667,719 of net outflows.
Grayscale’s GSOL lost approximately $1.17 million, partially offset by a $502,731 inflow into 21Shares’ TSOL. Solana funds had already recorded $5.2 million of outflows on Friday. XRP moved in the opposite direction. Franklin Templeton’s XRPZ attracted approximately $1.55 million, accounting for the category’s entire net inflow. Total XRP ETF assets stood at approximately $1.51 billion following the session.
Ethereum ETFs, meanwhile, reported no net creations or redemptions. The September 8 numbers represent a sharp change from the institutional buying seen immediately before the holiday. Across the same five categories, Friday produced approximately $205.8 million of net inflows, while September 3 generated substantially larger inflows led by Bitcoin.
One negative session does not establish a broader institutional reversal, particularly after the magnitude of the previous week’s Bitcoin demand. But Tuesday’s distribution shows that investors were considerably less willing to add exposure as crypto prices weakened and macroeconomic uncertainty increased.
With inflation data and the Federal Reserve decision approaching, ETF flows over the next several sessions should provide a clearer indication of whether the September 8 withdrawals represent temporary profit-taking or the beginning of a broader slowdown in institutional crypto demand.