Bitcoin Spot ETFs continue to experience capital outflows, with nearly $600 million withdrawn last week.
The FOMC meeting maintained current interest rates, causing investor uncertainty.
The price of Bitcoin dropped from $72,000 to $64,500, while the S&P 500 remains strong.
Bitcoin Spot ETFs experienced another day of net outflows of $145.83 million yesterday. These figures add to the $580 million in net outflows from last week.
The price of Bitcoin, which was nearing $72,000 before the release of US economic figures, gradually declined to its current level below $65,000 at the time of publication.
Details of Bitcoin ETF Capital Outflows
Among the 11 Bitcoin Spot ETFs, Fidelity’s FBTC recorded the largest capital outflow with $92 million on Monday. Normally, FBTC has significant net inflows, but last week it experienced a net outflow of around $140 million. Ark Invest and 21Shares followed with net outflows of $50 million from their ARKB ETF.
Grayscale’s GBTC and VanEck’s HODL also recorded negative flows of approximately $4 million each. The only ETF to show net inflows, albeit minimal, was Bitwise’s BITB with a total of $3 million. BlackRock’s IBIT, the largest Bitcoin Spot ETF in terms of net asset value, recorded zero flows.
Context and Investor Reactions
The net outflows reduced the cumulative total of Bitcoin Spot ETF net inflows to $14.96 billion. Until last week, these ETFs were on their longest streak of net inflows. However, conflicting data on US jobs and inflation has led to uncertainty among investors, prompting them to withdraw from riskier assets.
Impact of the FOMC Meeting
The largest capital outflows coincided with the Federal Open Market Committee (FOMC) meeting last Wednesday. The FOMC decided to maintain the country’s current interest rate between 5.25% and 5.50%.
Investors were hoping for multiple rate cuts this year, but the Federal Reserve indicated that there would only be one rate cut in 2024.
