Fidelity’s FBTC saw a significant outflow of $92 million, leading the way in net withdrawals. The focus of last week’s larger outflows was the FOMC meeting. Following a reported $580 million outflow last week, U.S. spot bitcoin exchange-traded funds (ETFs) continued to experience net outflows on Monday.
According to data from SoSoValue, the 11 bitcoin ETFs had a combined net outflow of $145.83 million on Monday, with Fidelity’s FBTC leading with a loss of $92 million. Despite typically recording substantial net inflows, FBTC saw a total outflow of over $140 million last week.
Additionally, $50 million was withdrawn from Ark Invest and ARKB from 21Shares. Grayscale’s GBTC and VanEck’s HODL also experienced negative flows of approximately $4 million each. The only net inflows of $3 million came from Bitwise’s BITB. Notably, BlackRock’s IBIT, the largest spot bitcoin ETF by net asset value, did not see any transactions yesterday.
Investor sentiment turned pessimistic as the overall net inflows of spot bitcoin ETFs dropped to $14.96 billion due to the recent net withdrawals. The U.S. spot bitcoin ETFs had been experiencing a streak of net inflows until last week when investors shifted away from riskier assets amid uncertainties stemming from conflicting U.S. economic data.
The recent FOMC meeting, where the country’s interest rate remained at 5.25% to 5.50%, was a key factor in the larger net outflows last week. Investors had expected multiple rate cuts this year, but the Fed’s indication of only one in 2024 disappointed many.
CoinShares, a digital asset manager, suggested in a report released on Monday that investors sold off their fixed-supply assets in response to the “more hawkish-than-expected” FOMC meeting. As a result, the price of Bitcoin, which was nearing $72,000 before the release of U.S. economic data, has now dropped to $65,735.
In today’s highlighted crypto news, Tether has launched a gold-backed stablecoin tied to the U.S. dollar.
