US spot Bitcoin exchange-traded funds (ETFs) experienced a second straight day of outflows for the second day this week after ending their 19-day inflow streak on June 10.

Data from Farside shows that on June 11, Bitcoin ETFs had cumulative outflows of $200 million, with withdrawals driven by five issuers.

ETF outflows

Grayscale’s GBTC led the outflows with $121 million, raising its total outflows to $18.03 billion. Ark Invest’s ARKB followed with nearly $57 million in net outflows. Bitwise’s BITB reported approximately $12 million in outflows, while Fidelity and VanEck saw smaller net outflows of $7.4 million and $3.8 million, respectively.

Despite these significant outflows, the funds have accumulated a total net inflow of $15.42 billion since their launch in January.

These substantial outflows contributed to Bitcoin’s price drop to as low as $66,207 in the past 24 hours. Crypto analyst Patrick Scott commented:

“Bitcoin ETFs are adding a new reflexive element to price, where off-hours dumps translate to outflows on the next trading day.”

Bitcoin has since recovered to $67,449 as of press time.

FOMC ahead

Market experts believe that BTC’s recent price performance and the ETF outflows indicate investors’ caution ahead of the crucial Federal Open Market Committee (FOMC) meeting.

Notably, three US lawmakers—Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper—have urged the Federal Reserve to lower the federal funds rate from its two-decade high of 5.5%. They argued:

“This sustained period of high interest rates is already slowing the economy and is failing to address the remaining key drivers of inflation.”

Despite this, the market expects no change in interest rates. According to the CME FedWatch Tool, 99.4% of investors predict the rate will stay at the current level of 525-550 bps.

The post Bitcoin ETF outflows hit $200 million ahead of FOMC meeting appeared first on CryptoSlate.

The post Bitcoin ETF outflows hit $200 million ahead of FOMC meeting appeared first on Top Crypto Game.

Investor interest in spot Bitcoin exchange-traded funds (ETFs) appears to be waning, with outflows totaling $218 million in the past day.

According to data from Farside Investors, BlackRock’s IBIT Bitcoin ETF experienced its second consecutive day of zero flows, while Fidelity’s FBTC saw its first daily net outflow, totaling $23 million.

Other US Bitcoin funds experienced notable daily outflows. Grayscale GBTC fund continued its outflow trend, losing $139.37 million, while $31.34 million exited Ark Invest and 21Shares’ ARKB fund. Additionally, Valkyrie’s fund experienced $20.16 million in outflows, and Bitwise saw a negative flow of $6 million.

In contrast, Franklin Templeton’s EZBC emerged as the only fund with daily net inflows, attracting $1.87 million.

Despite these significant outflows, net inflows into the ETFs have surpassed $12 billion since their launch in January.

Why are Bitcoin ETFs seeing outflows?

Earlier in the week, James Butterfill, CoinShares’ Head of Research, explained that these outflows signal waning interest among ETP/ETF investors, fueled by speculations about potential delays in rate cuts by the Federal Reserve.

Meanwhile, some market experts noted that the slowdown was necessary for the market to take a breather. Bloomberg Senior ETF analyst Eric Balchunas reported that Fidelity’s FBTC and BlackRock’s IBIT had broken records for the highest net assets within the first 72 days of launch.

He said:

“The league of own-ness of IBIT, FBTC et al shows how overheated it all was, a breather was overdue to be honest.”

Fidelity FBTC and BlackRock IBIT are particularly noteworthy as they are market leaders, collectively managing over $27 billion in assets.

However, there’s anticipation surrounding Morgan Stanley’s reported plan to allow its 15,000 brokers to recommend spot Bitcoin ETFs to clients, which could potentially reignite interest in the market.

Mentioned in this article

The post Investor exodus from Bitcoin ETFs as BlackRock and Fidelity see significant outflows appeared first on Top Crypto Game.