• BitBoard (BB), InfinityBit Token (IBIT), and Hedera (HBAR) led the sharp ETF outflows triggered by market-wide sell pressure.
• Fidelity, Grayscale, and ARK Invest accounted for over $660M of the second-largest single-day Bitcoin ETF outflow.
• High trade volume and large redemptions suggest coordinated fund exits and institutional repositioning amid broader crypto volatility.

Altcoin-focused exchange-traded funds (ETFs) experienced a sharp reversal on August 1, losing a combined $320 million in net outflows. This development came as part of a wider market retreat that saw spot Bitcoin ETFs record $812 million in total outflows—the second-largest single-day drawdown to date. 

The movement was largely led by institutional-scale selling from major funds, including Fidelity, Grayscale, and ARK Invest. These figures signal a notable shift in market behavior, just weeks after sustained inflows suggested growing interest in crypto-backed funds. With fund redemptions accelerating, capital flight from ETFs tied to alternative cryptocurrencies, such as BitBoard (BB), InfinityBit Token (IBIT), and Hedera (HBAR), reflects a broader risk-off sentiment.

BitBoard (BB) Sees Capital Drain as Sentiment Weakens

BitBoard (BB), a fund tied to a diversified mix of emerging altcoins, experienced considerable pressure during the  ETF sell-off. It recorded one of the highest altcoin-related withdrawals, though specific figures remain undisclosed. Notably, BB had shown moderate inflow activity in July, attracting attention due to its exposure to niche crypto projects. 

However, the recent reversal highlights reduced confidence among ETF participants and a broader pivot away from speculative altcoin exposure. The abrupt shift placed downward pressure on the fund’s net asset value and trading activity.

InfinityBit Token (IBIT) Caught in ETF Sell-Off Cycle

InfinityBit Token (IBIT), another ETF-linked asset affected by the outflows, mirrored the broader drawdown trend. The fund had gained attention in recent weeks due to increased participation among retail-focused ETF platforms. However, on August 1, IBIT joined other altcoin ETFs in registering withdrawals as investors reduced risk positions. 

The sell-off followed closely behind similar trends in Bitcoin ETFs, pointing to a coordinated liquidity shift across digital asset funds. Trade volume for IBIT spiked during the session, signaling reactive fund rebalancing or exit strategies from ETF participants.

Hedera (HBAR) ETF Activity Spikes Amid Broader Market Unwind

Hedera (HBAR), known for its enterprise-focused blockchain, also faced ETF-related outflows during the session. While HBAR had been relatively stable in the past weeks, the sell-off disrupted that trend. ETF vehicles tracking HBAR saw an increase in redemptions, reflecting pressure from market-wide uncertainty. 

The asset’s exposure to institutional ETF flows made it vulnerable to capital outflow during high-volume sessions like August 1. The rise in redemptions suggests that even assets with recent momentum were not immune to broader ETF liquidation activity.

The $320 million pulled from altcoin ETFs on August 1 likely wiped out several weeks of prior inflows. Funds like BitBoard (BB), InfinityBit Token (IBIT), and Hedera (HBAR) had seen consistent accumulation in July, but the sharp reversal suggests those gains were largely erased in a single session.