US crypto ETFs open August with largest outflows in months following record-breaking July

U.S.-based spot Bitcoin and Ethereum ETFs opened August with a notable reversal from July's record-breaking month, shedding nearly $1 billion in combined value as prices dipped. 

Bitcoin funds shed a combined $812.3 million on Friday, according to SoSoValue data, their worst day since February 24's $1.1 billion in outflows, and their second worst day of all time. Notably, BlackRcok's IBIT fund, the industry leader, shed only $2.6 million, while both Fidelity's FBTC and Ark & 21 Shares' ARKB shed around $330 million each. 

The ETF offerings from Grayscale and Bitwise also aw outflows worth tens of millions, and no fund attracted inflows on Friday, according to the data. 

BlackRock's IBIT continues to be twice the size of its largest competitor, FBTC, in terms of assets under management, The Block's data shows. The noted reversals come after a record-breaking month for the funds in July in terms of capital inflows, with an average of $600 million in inflows per day. 

"Odd way to end what was perhaps most important week *ever* for crypto," wrote NovaDius Wealth president Nate Geraci wrote on X. "At least from a regulatory perspective."

ETH ETFs fare similarly

U.S. spot Ethereum ETFs showed similar activity, with their total outflows of $152.3 million marking the funds' worst day since Jan. 7's $159.3 million. Friday marked the fourth-worst day for the Ethereum funds, according to SoSoValue data. 

BlackRock's industry-leading Ethereum fund, ETHA, was likewise neutral on Friday, showing no significant inflows or outflows, while each other fund on the market logged outflows. Bitwise's ETHW fund saw the largest outflows, with $40.3 million, followed by Grayscale's ETHE with $37.2 million. 

Fund issuers are looking to gain approval to offer spot Solana ETFs, with a flurry of amended filings arriving last week. Earlier this month, Rex-Osprey launched the first staked crypto ETF in the U.S., with a clever regulatory workaround.