US Bitcoin ETFs Experience Major Outflows Amid Economic Uncertainty
On Tuesday, US spot bitcoin exchange-traded funds (ETFs) saw net outflows amounting to $200 million, continuing the trend from Monday that ended their record streak of net inflows.
Grayscale’s GBTC experienced the largest net outflows, totaling $121 million on Tuesday. This was followed by Ark Invest’s ARKB with $56 million in net outflows, according to data from SoSoValue. Bitwise’s BITB reported $12 million in outflows, while Fidelity and VanEck both saw single-digit net outflows.
Outflows dominated among U.S. spot bitcoin ETFs, with other funds, including BlackRock’s IBIT, recording zero flows on Tuesday.
This week, the 11 spot bitcoin ETFs ended their 19-day consecutive run of net inflows on Monday, with outflows totaling $64.93 million. Despite this, the funds have accumulated a total net inflow of $15.42 billion since their inception in January.
The market’s attention now turns to key economic indicators from the U.S. expected later on Wednesday, including the Federal Open Market Committee (FOMC) meeting results and the Consumer Price Index (CPI) data.
The latest CPI, a critical measure of inflation, is projected to show a 0.1% increase from April, indicating a broader trend of disinflation, as reported by CNBC.
The Federal Reserve’s upcoming rate-setting meeting is not expected to yield surprises, with CME Group predicting a 99.4% probability that the Fed will maintain the current interest rate of 5.25% to 5.50%. However, a Reuters poll of economists suggests that the Fed is likely to reduce rates twice this year, starting in September.
Bitcoin is currently trading at $67,500, down from last week’s peak of nearly $72,000, according to The Block’s bitcoin price page.
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