U.S.-listed spot Bitcoin ETFs shed $236.46 million on Monday, September 1, their largest single-day withdrawal since late July, as traders braced for a potential Federal Reserve rate hike.
BlackRock’s iShares Bitcoin Trust (IBIT) was responsible for roughly $201 million of the total outflow, according to SoSoValue data. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $43.67 million in redemptions. Bitwise’s Bitcoin ETF (BITB) was the only fund to record net inflows, attracting $8.38 million. The remaining ten U.S. spot Bitcoin ETFs reported no net flows at all, a sign that most institutional investors simply sat on the sidelines.
The withdrawal erased the previous session’s $216.70 million inflow, which had been led by BlackRock and marked a brief recovery after a $201.8 million outflow on August 28. That earlier outflow ended a nine-session inflow streak that had seen over $900 million enter the products in rapid succession.
August Was the Best Month of 2026
The September 1 pullback came on the heels of a record-setting August. Spot Bitcoin ETFs attracted $3.52 billion in net inflows during the month, up dramatically from just $172 million in July and the strongest monthly performance since October 2025.
Total net assets held by U.S. spot Bitcoin ETFs jumped roughly 31% from $76.29 billion at the end of July to $99.61 billion by August 30, bringing the $100 billion milestone within reach for the first time. August’s inflows erased about two-thirds of the funds’ year-to-date deficit, cutting cumulative net outflows from approximately $5.29 billion to $1.77 billion.
The August surge was concentrated in the final week. BlackRock alone pulled in $479.8 million on August 25, the single largest inflow day of the month. The surge coincided with Bitcoin climbing from around $64,000 in late July to above $81,000 by late August, a 25% rally that revived institutional interest after months of tepid demand.
Fed Rate Hike Bets Pressure Risk Assets
The immediate catalyst for Monday’s sell-off was growing conviction that the Fed will raise rates at its September meeting. The CME FedWatch Tool showed a 64% probability of a 25 basis-point hike, a dramatic shift from the rate-cut expectations that prevailed just weeks ago.
Sticky inflation data and hawkish commentary from Fed officials drove the repricing. Governor Christopher Waller said last week that “if inflation doesn’t come down, higher rates will be needed.” The August CPI data, scheduled for release September 11, will be the last major inflation readout before the September 16-17 FOMC meeting.
Bitcoin traded near $77,000 on Monday, down about 5.5% from its recent high near $81,400. The broader crypto market was similarly weak, with Ether shedding over 2% and Solana declining more than 3% over the past 24 hours.
The rate hike expectations also weighed on traditional markets. The S&P 500 fell 56 points to close at 7,553.68, ending a record-winning streak. Global bond yields continued their upward march, with the 10-year Treasury yield at 4.79% and Japan’s benchmark hitting 3% for the first time since 1996. U.K. gilts surged to 5.25%, their highest level in years.
Strategy’s $370M Bitcoin Purchase Overlooked
The outflows came despite fresh corporate buying. Michael Saylor’s Strategy disclosed a purchase of 4,603 Bitcoin for $370 million on September 1, its first acquisition in two months. The purchase brought Strategy’s total holdings to 845,050 BTC at an average cost well below current prices.
The company also repurchased $152 million of its STRC preferred stock. Strategy’s stock traded down alongside the broader market despite the Bitcoin accumulation, reflecting the broader risk-off mood across equities and digital assets alike.
The disconnect between institutional buying through ETFs and corporate treasuries on one hand, and retail-driven outflows on the other, points to a market split between long-term accumulation and short-term macro hedging. Strategy’s purchase, combined with earlier buying from firms like Metaplanet and Capital B, shows that corporate Bitcoin treasury strategies remain active even as ETF investors reduce exposure.
Meanwhile, BlackRock lowered the minimum transaction size for in-kind Bitcoin conversions into IBIT shares from $25 million to $1 million, according to Bloomberg analyst Eric Balchunas. The move is designed to attract smaller institutional players who previously found the minimum prohibitive.
What September Could Bring
September has historically been a poor month for Bitcoin, a pattern traders have dubbed “Rektember.” The combination of rate-hike risk, seasonal weakness, and the Iran-driven oil shock creating broader inflationary pressure makes the setup particularly challenging.
The oil market remains a wildcard. Brent crude has been trading near $95 per barrel after renewed U.S.-Iran strikes near the Strait of Hormuz. Diesel crack spreads hit a record $106 per barrel on September 1, adding to inflationary concerns. If energy prices remain elevated, the Fed’s hand may be forced toward tightening regardless of other data.
Bitcoin ETF investors also face an unusual divergence. Spot Ethereum ETFs recorded no outflows on September 1, and XRP and Solana ETFs actually attracted small inflows. That suggests some investors are rotating within crypto rather than exiting entirely, a dynamic that could support altcoin prices even as Bitcoin faces headwinds.
The August CPI report on September 11 and the FOMC decision on September 17 will likely set the tone for the rest of the month. If inflation comes in hot and the Fed signals a hike, more ETF outflows could follow. A cooler print, however, could reverse the trend and push Bitcoin back above $80,000.
Analysts at Bloomberg noted that despite the outflows, total ETF assets remain near record highs, suggesting the underlying institutional infrastructure is intact even as short-term positioning shifts. The question is whether August’s momentum can survive a hostile macro backdrop.
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