A recent report says withdrawal of $326 million from nine Bitcoin Exchange-Traded Funds (ETFs), marking a significant increase over the prior day’s outflows. This shift comes amid a downturn in Bitcoin’s value, with the cryptocurrency‘s price dropping to $61,035.
The investment landscape has exhibited a wary approach, with BlackRock’s Bitcoin ETF, IBIT, witnessing a $75 million influx, and Fidelity’s FBTC following with $39.6 million. However, other Bitcoin ETFs have seen negligible inflows. This cautious behavior from institutional investors precedes the upcoming Federal Open Market Committee (FOMC) meeting.
Grayscale’s Bitcoin ETF, GBTC, in particular, reported a substantial net outflow of $444 million on Tuesday, despite a recent fee reduction announcement by Grayscale CEO Michael Sonnenshein. This move appears not to have assuaged investor concerns, with an additional 6,860 Bitcoins, or 1.9% of their total holdings, also exiting the fund.
The cryptocurrency market is facing increasing uncertainty as it braces for the FOMC meeting results. Bitcoin and Ethereum have both faced substantial price reductions, with Bitcoin slipping below $61,100 and Ethereum falling to approximately $3,089.
Analysts underscore the importance of demand from spot Bitcoin ETFs in maintaining the $60,000 price range. Despite the market jitters, CryptoQuant analysis suggests the bull market may still have momentum, without definitive signs of a halt.
