- This Tuesday, the landscape for U.S. spot Bitcoin exchange-traded funds (ETFs) shifted as they saw net outflows amounting to $200 million, coinciding with the anticipation of critical economic updates, including CPI and FOMC announcements.
- The outflows followed a similar trend on Monday, interrupting a remarkable streak of continuous net inflows.
- As noted, Grayscale’s GBTC experienced the most significant outflows at $121 million, followed by Ark Invest’s ARKB at $56.5 million.
This article delves into the recent financial movements in the Bitcoin ETF sector and the economic factors impacting these trends.
Termination of 19-Day Inflow Streak for Spot Bitcoin ETFs
Recent data from Farside Investors highlighted Grayscale’s GBTC leading the pack in net outflows with $121 million. Following closely, Ark Invest’s ARKB reported $56.5 million in outflows, and Bitwise’s BITB noted outflows of $11.7 million. Other ETFs, such as those from Fidelity and VanEck, posted smaller outflows of $7.4 million and $3.8 million, respectively, while BlackRock’s IBIT saw no activity during this period.
The cessation of the 19-day inflow streak on Monday, with a total outflow of $64.93 million, marks a pivotal moment as these 11 Bitcoin ETFs had been seeing consistent net inflows, summing up to $15.42 billion since their inception in January.
This trend shift happens against the backdrop of investors keenly awaiting significant economic releases from the U.S., specifically the Federal Open Market Committee (FOMC) meeting outcomes and the Consumer Price Index (CPI) figures.
Anticipated for Wednesday, June 12, the CPI report holds potential sway over the Federal Reserve’s future interest rate decisions. Predictions suggest a modest 0.1% rise from April, indicating a broader trend of disinflation. Concurrently, there is a 99.4% likelihood that the Federal Reserve will maintain the current interest rate of 5.50%, as per CNBC’s forecasts. However, a Reuters survey of economists proposes that the Fed might execute two rate reductions later this year, possibly commencing in September.
Bitcoin’s Decline to $66K and ProShares’ Ethereum ETF Filing
Amid these unfolding events, Bitcoin’s value fell on Tuesday, plummeting from slightly over $70,000 to $66,000. As per CoinGecko’s data, Bitcoin currently trades at $67,400, a decrease from its peak of nearly $72,000 just last week.
Moreover, ProShares made headlines by filing an S-1 registration statement for their spot Ethereum ETF on June 10, marking them the ninth entity to apply to the SEC, following the approval of eight similar applications three weeks prior.
SEC just added the ProShares’ Ethereum ETF Filing to its website. (That is extremely quick) Instinct initially says this wont launch on day 1 with the other ETFs whenever that is but who knows. This is interesting.
— James Seyffart (@JSeyff) June 10, 2024
James Seyffart further commented that while the filing had been acknowledged and listed on the SEC’s website, it had not yet received approval. He noted the intriguing timing of ProShares’ late entry into the Ethereum ETF market.
Conclusion
The recent outflows from Bitcoin ETFs mark a significant shift in a previously steady trend of inflows, as market participants balance their portfolios amidst pending economic data releases. With Bitcoin prices showing fluctuations and new entrants like ProShares eyeing Ethereum ETFs, the market remains dynamic. Investors should stay informed as the Federal Reserve’s decisions and macroeconomic indicators continue to shape the landscape.
