👉👉👉 U.S. #BitcoinETFs Bleed Record $563M Even as Fed's Powell Rules Out Rate Hike

Investors swiftly withdrew a staggering $563 million from US-based spot bitcoin ETFs on Wednesday, despite Federal Reserve Chairman Jerome Powell dismissing any immediate rate hike. Leading the outflows were Fidelity's FBTC, followed closely by GBTC, ARKB, and IBIT.

The 11 ETFs collectively experienced a net outflow of $563.7 million, marking the largest withdrawal since their inception on January 11. This downward trend has persisted for five consecutive days, with investors pulling nearly $1.2 billion from these funds since April 24, according to data from Farside Investors and CoinGlass.

Fidelity’s FBTC saw the most significant outflows on Wednesday, totaling $191.1 million. The notable exodus from FBTC, along with GBTC, ARKB, and #IBIT , contrasts with the consistent inflows witnessed in the first quarter. This trend was especially notable considering the regular large outflows from the relatively expensive #grayscale ETF (GBTC).

Despite Powell's dovish stance, supporting risk assets like bitcoin, other ETFs also saw significant outflows. Powell reiterated the Fed's decision to maintain the benchmark interest rate between 5.25% and 5.5%, affirming economic strength and dispelling concerns about rate hikes or liquidity tightening.

Additionally, the Fed announced plans to significantly reduce its quantitative tightening (QT) program starting June, while the US Treasury initiated a program to repurchase billions of dollars in government debts to enhance liquidity in the bond market.

Bitcoin, like other risk assets, responded to expected changes in liquidity conditions, briefly rallying from $56,620 to $59,430 following Powell’s comments. However, this bounce was short-lived, with bitcoin retracing to $57,300 by press time.

The debut of Asia's first spot bitcoin and ether ETFs in Hong Kong earlier in the week with disappointing volumes further dampened sentiment in the #CryptoMarket .

Source - finance.yahoo.com