Blockchain
Bitcoin ETFs See Net Outflows of $200 Million in ‘Risk-Free Mode’ Ahead of FOMC and CPI
U.S.-listed spot bitcoin exchange traded funds (ETFs) recorded a second straight day of outflows as traders likely de-risked ahead of key macroeconomic reports due later Wednesday.
Data from SoSoValue shows that the eleven ETFs recorded net outflows of $200 million on Tuesday, the highest level since May 1 of $580 million. The redemptions came amid a BTC sell-off, during which the asset briefly plummeted to $66,200 before recovering.
Grayscale’s GBTC accounted for the majority of the $120 million in outflows, leading its peers. GBTC continues its infamous run to become the worst-performing ETF in terms of outflows since it launched in January, racking up a total of $18 billion in outflows.
Ark Invest’s ARKB, Bitwise’s BITB, Fidelity’s FBTC and VanEck’s HODL saw outflows of between $56 million and $7 million. None of the ETFs recorded inflows.
Traders said the outflows were likely reducing risk ahead of Wednesday’s consumer price index reading and the two-day Federal Open Market Committee (FOMC) meeting ending today, where the Fed monetary policy.
“Markets are [in] risk appetite patterns ahead of tomorrow’s CPI and FOMC. This month’s FOMC will also release the Dot Plot, which informs the market how many cuts the Fed expects for the remainder of 2024,” Singapore-based QCP Capital said in a message broadcast Tuesday.
However, the firm added that its long-term bullish view remained intact.
“Despite the short-term headwinds, we believe this could be a good opportunity to accumulate money. Bullish events on the horizon, such as the eventual ETH spot ETF launching alongside Biden and Trump in a verbal arms race to win the cryptocurrency vote,” QCP said.
Further hurdles include Treasury Secretary Janet Yellen’s speech on Friday, which could cause a reaction in riskier assets like cryptocurrencies based on comments, as previously reported.