Bitcoin ETF Outflows Rise: After getting off to a strong start in June, spot Bitcoin exchange-traded funds (ETFs) have had considerable outflows over the past month. This is due to the Federal Reserve’s decision to stick to its plans of maintaining interest rates for more extended than was anticipated. Over $92 million worth of outflows were recorded by Fidelity’s FBTC, which paved the way. The US spot Bitcoin ETF to register $145 million in net outflows on Monday, June 17. Fidelity’s FBTC has experienced net outflows of more than 140 million dollars during the past week.
While Grayscale’s GBTC and VanEck’s HODL observed negative flows of around $4 million each on Monday, Ark Invest and 21Shares’ ARKB suffered net outflows of $50 million. Additionally, VanEck’s HODL experienced these negative flows. While Bitwise’s BITB saw $3 million in net inflows on Monday, BlackRock’s IBIT saw no. On the other hand, the net inflows were comparably extremely poor.
US Spot Bitcoin ETFs
The total assets under management (AUM) of the US spot Bitcoin exchange-traded funds. ETFs have slipped below $15 billion again due to massive outflows. The most significant withdrawals occurred around Wednesday’s Federal Open Market Committee meeting. During this meeting, Fed Chair Jerome Powell indicated that the country’s interest rate should be 5.25% to 5.50%.
Even though market experts had projected numerous rate cuts earlier this year, the strong job market and ongoing inflation pressured the Federal Reserve to keep interest rates high. Market analysts are currently anticipating that there will be only one reduction. The interest rate by the end of the year 2024.
Bitcoin Products See $620M in Outflows.
According to a study from CoinShares, Bitcoin investment products experienced total outflows amounting to $620 million during the past week. In short, Bitcoin funds experienced inflows amounting to $1.8 million. These details were taken from Bitcoin ETF Outflows Rise investment goods. According to the research, spot Bitcoin exchange-traded funds were the primary drivers of most outflows. According to Butterfill, the global assets under management decreased from $100 billion to $94 billion due to net outflows and a 5% loss. The price of Bitcoin occurred during the more prominent crypto market sell-off that happened last week.
Also Read: Bitcoin ETF Outflows Rise as Fed Refuses Rate Cuts
The global trading volumes of digital asset investment products were lower last week, coming in at $11 billion, as reported by CoinShares. This is in comparison to the annual weekly average of $22 billion. Bitcoin exchange-traded funds (ETFs) in the United States accounted for $8.73 billion in weekly trading volume. A considerable decrease from the peak of $32.69 billion during the week of March 4-8. In any case, it would appear that the early excitement associated with spot Bitcoin exchange-traded funds is beginning to wane. The institutional players. As a result, these players are waiting for another macro catalyst to come in the shape of rate cuts so that they can receive even more capital inflows into Bitcoin exchange-traded funds (ETFs).
