SHARE: US bitcoin ETFs saw outflows of $580.6 million following the Federal Reserve's hawkish stance on interest rates, while funds flowed into eta products, signaling a shift in investor sentiment.
The bearish trend in bitcoin-ETFs is not only seen in the US. Globally, outflows from digital asset investment products were the largest in nearly three months, exceeding $600 million. After five weeks of steady inflows into these investment vehicles, there was a significant reversal last week, with cumulative net outflows totaling $580.6 million.
Analysts attribute this reversal to last Wednesday's Federal Open Market Committee (FOMC) meeting, which was more hawkish than expected. The Fed left interest rates unchanged at 5.5% and proposed only one rate cut this year. This stance on inflation may have caused investors to pull funds out of risky assets like #bitcoin , leading to outflows from spot bitcoin ETFs.
U. S. spot bitcoin ETFs recorded 19 days of positive inflows, accumulating more than $4 billion. However, this trend reversed last Monday, coinciding with a drop in the bitcoin price following the release of various U. S. economic data reports. The outflow of funds was massive in nature. Grayscale's GBTC, the world's largest bitcoin fund, topped the list with $274.3 million in outflows. It was followed by Ark Invest's ARKB with US$149.7 million and Fidelity's FBTC with US$146.3 million. BlackRock's IBIT was the lone exception with net inflows of US$41.6 million.
Bearish sentiment also affected global markets. According to Coinshares, digital asset investment products saw the largest outflows in nearly three months - more than US$600 million. Interestingly, while bitcoin is struggling, Ethereum-related products are showing positive momentum. Last week, net inflows of $13 million were recorded globally, indicating a favorable outlook for #ethereum .
Despite the outflows from bitcoin #ETF funds, optimism for ethereum remains strong.
Recent outflows have underscored the dynamic nature of crypto investing.
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