Bitcoin ETFs see sharp outflows after strong August

After a strong August, Bitcoin and Ethereum ETFs are now facing considerable headwinds. Spot Bitcoin ETFs in the United States recorded roughly $449.5 million in outflows over three trading days last week, while Ethereum ETFs are also attracting weaker inflows. Market sentiment is shifting under pressure from rising bond yields and increased inflation pressure.

In brief:

• Bitcoin ETFs saw $449.5 million in outflows over three days after a strong previous week
• US producer inflation accelerated to 5.4%, energy prices are rising
• Bond yields are climbing despite a $6 billion buyback operation

Sharp reversal after August peak

Bitcoin ETFs still attracted $3.52 billion in August, their strongest month since October 2025. This was supported by nine consecutive days of inflows from 17 to 27 August. Trading volume climbed 49% in August to $58.63 billion, pointing to genuine investor interest during that period.

The turn was abrupt. From 8 September, the ETFs shed $46.6 million, followed by $120.2 million on 9 September and the largest loss of $282.7 million on 10 September. The Ark 21Shares Bitcoin ETF (ARKB) alone lost $164.3 million on 10 September.

The previous week was still record-strong

The week before the outflow, however, was exceptional. Bitcoin ETFs attracted around $3.8 billion in the three weeks to 4 September, their strongest three-week period of 2026.

Total ETF assets reached around $101.3 billion. This shows that investors were actively building Bitcoin exposure ahead of the recent retreat, possibly in anticipation of macroeconomic developments.

Ethereum ETFs follow with a smaller retreat

Ethereum ETFs are also feeling the pressure. Spot Ethereum ETFs recorded a combined outflow of $19.5 million over the same three trading days.

This follows a record week in late August, when Ethereum products attracted around $824 million. The weakening suggests that investors are scaling back their positions now that risks are increasing.

Bond yields keep rising despite buyback operation

One key macro factor weighing on the markets is the rise in bond yields. The US government carried out a $6 billion buyback operation last week, three times larger than normal long-term bond purchases.

Despite this large-scale intervention, the yield on 10-year government paper approached 5%, while 30-year bonds rose to around 5.37%. This illustrates that the Treasury market, at around $32 trillion, is so large that even a record operation has barely any impact. Higher bond yields make risk investments such as crypto less attractive.

Producer inflation accelerates to 5.4%

Inflation pressure is mounting. In August, producer inflation accelerated to 5.4% year on year, while daily prices rose 0.4%.

Goods rose 1.1%, while services edged up just 0.1%. Energy was a major driver, but underlying producer inflation also remained elevated. This suggests persistent price pressure in the economy, which could lead to further interest rate increases.

Labour market stronger than average

The labour market, however, provides a counterweight. The US economy added 162,000 jobs in August, well above the average of just 31,000 over the previous 12 months.

Unemployment remained at 4.1%. But the composition matters: restaurants contributed 59,000 jobs, local government education 42,000. The information sector lost 23,000 jobs, including 8,000 in computing infrastructure and data processing. At the same time, labour force participation fell from 62.1% to 61.6% since January, pointing to less active participation.

Macro environment under strain

The combination of rising inflation pressure, higher bond yields and shifting labour market dynamics paints a complex macro environment. Bitcoin regularly clashes with rising bond yields, because investors move towards safer havens when risks increase.

Bitcoin is currently trading around $77.300, down 0.9% over 24 hours. The recent ETF outflow and macroeconomic factors continue to weigh on the market.