Bitcoin ETFs (BTC) in U.S. Witness Unprecedented $563M Outflow, Unaffected by Fed’s Decision to Hold Rates

• Spot bitcoin ETFs in the U.S. experienced a record outflow of $563 million on Wednesday, bringing the total to nearly $1.2 billion over the past week.
• Fidelity’s FBTC saw the highest withdrawal at $191.1 million, potentially influencing investor sentiment.
• Despite Federal Reserve Chairman Jerome Powell’s dovish stance, the ETF market outlook remained unchanged.

Bitcoin ETFs in the U.S. witness record outflows, with Fidelity’s FBTC leading the pack. Despite a dovish stance from the Federal Reserve, the ETF market outlook remains unchanged.

Record Outflows for U.S. Bitcoin ETFs

On Wednesday, U.S.-based spot bitcoin exchange-traded funds (ETFs) witnessed increased selling pressure, hitting a record outflow of $563 million since their inception on January 11. Data from CoinGlass revealed that 11 ETFs saw a combined net outflow of $563.7 million, continuing the decline that started on April 24. Over the past week, investors have withdrawn nearly $1.2 billion from these ETFs.

Fidelity’s FBTC Sees Highest Withdrawal

Fidelity’s FBTC saw the highest withdrawal on Wednesday, with investors pulling out $191.1 million. With FBTC among the ETFs with the most inflows in the first quarter, this development might influence investor sentiment. Moreover, GBTC was second on Wednesday’s list of outflows, with pullouts amounting to $167.4 million. In addition, ARKB and IBIT saw outflows of $98.1 million and $36.9 million, respectively.

ETF Market Outlook Unchanged Despite Powell’s Dovish Stance

During the day, Federal Reserve Chairman Jerome Powell reaffirmed a “net-dovish” stance, in which the central bank prioritizes employment and economic growth over liquidity tightening. However, Powell’s viewpoints did not change the outlook of the ETF market, which continued to witness selling pressure. Despite recent disappointing inflation figures, Powell emphasized the economy’s strength and dismissed concerns about increased rates or reduced liquidity.

Bitcoin’s Response to Powell’s Remarks

Bitcoin displayed sensitivity to anticipated shifts in liquidity conditions common among risk assets. Following Powell’s remarks, BTC experienced a brief uptick from $56,620 to $59,430. However, BTC is yet to regain the previous $60,00 mark, trading at $58,300, per data from Coinmarketcap.

Conclusion

Despite a dovish stance from the Federal Reserve, the U.S. Bitcoin ETF market witnessed record outflows, led by Fidelity’s FBTC. The market outlook remains unchanged, indicating that investors are still cautious. Bitcoin’s price showed a brief uptick following Powell’s remarks, but it is yet to regain its previous highs.