Spot Bitcoin ETFs Sees Massive $562M Outflow as BTC Retreat Continues

Bitcoin ETF

United States Spot Bitcoin ETFs have outflowed $562 million within three market days. 

After a 19-day streak of inflows for Bitcoin Exchange-Traded Funds (ETFs), the market has taken an unexpected turn, with a massive sell-off of over half a million within just three market days. This sudden and unexpected shift has led to a more than 7% decrease in Bitcoin’s price over the last seven days, falling below $65,000. The uncertainty among U.S. investors following last week’s Federal Open Market Committee (FOMC) meeting has further contributed to this market volatility. 

Spot Bitcoin ETFs Outflows $562 Million

As Farside shows, Bitcoin ETFs suddenly switched to red days starting last week, recording outflows of more than $580 million. Its outflow streak has extended to this week, recording a $145.9 million outpour on Monday. 

Fidelity’s FBTC has led the outflow, selling $278.5 million of its ETF within the last three market days. It is closely followed by Ark 21Shares ARKB, which has seen an outflow of $151.7 million during the same period. In contrast, Grayscale’s ETF, known for its outflows, has only sold $116.8 million of its GBTC. 

BlackRock’s IBIT has undoubtedly remained on the green side, recording $19.7 million in inflows within the period. In contrast, Franklin Bitcoin ETF, EZBC, Valkyrie’s BRRR, and WisdomTree Bitcoin Fund, BTCW, have remained stagnant—only Bitwise’s BITB inflowed funds worth $2.9 million yesterday. 

FOMC Meeting Affects Inflows Into Bitcoin ETFs

Significantly, large outflows from Bitcoin ETFs last week were directly influenced by the FOMC meeting on Wednesday. The FOMC’s decision to retain the U.S. interest rate within the 5.25% to 5.50% range, contrary to investors’ expectations, triggered significant market movements. 

James Butterfill, Coinshares’ head of research, described the meeting as a “more hawkish-than-expected FOMC meeting, prompting investors to scale back their exposure to fixed-supply assets.”

Following the announcement, Bitcoin has significantly dropped in price, dragging other altcoins as the crypto market remains bearish. At press time, Bitcoin trades at $65,300, with other bearish candles being formed as investors continue to sell, leaving many market predictors and Bitcoin enthusiasts in perplexity.