Bitcoin ETFs Have $200M Outflow

YEREVAN (CoinChapter.com) — U.S.-listed spot bitcoin exchange-traded funds (ETFs) experienced significant outflows for the second consecutive day. Traders appear to be de-risking ahead of key macroeconomic reports.

Data from SoSoValue shows that eleven ETFs saw $200 million in net outflows on Tuesday, the highest since May 1, which had $580 million in outflows. This development occurred amidst a BTC sell-off, with the asset briefly dropping to $66,200 before recovering.

Bitcoin ETFs Daily Net Outflows. Source: SoSoValue Grayscale’s GBTC Leads the Outflows

Grayscale’s GBTC was the major contributor, accounting for $120 million of the total outflows. GBTC has been the worst-performing ETF by outflows since its launch in January, accumulating $18 billion in outflows.

Bitcoin ETF Flow Table (US$m). Source: Farside Investors

Ark Invest’s ARKB, Bitwise’s BITB, Fidelity’s FBTC, and VanEck’s HODL also saw notable outflows. ARKB recorded $56 million, while BITB, FBTC, and HODL had outflows ranging from $7 million to $15 million. None of these ETFs saw any inflows during this period.

Traders De-Risk Before CPI and FOMC Meetings

The outflows are likely due to traders’ de-risking actions ahead of the U.S. Consumer Price Index (CPI) reading and the Federal Open Market Committee (FOMC) meeting. These events are scheduled for later today and have created a sense of caution in the market. Singapore-based QCP Capital noted,

“Markets are in risk-off mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which informs the market how many cuts the Fed anticipates for the rest of 2024.”

QCP Capital commented further,

“Despite short-term headwinds, we think this might be a good opportunity to accumulate coin. Bullish events on the horizon include the eventual ETH spot ETF going live along with Biden and Trump in a verbal arms race to win the crypto vote.”

The Federal Reserve is expected to maintain the current interest rate of 5.50%, with a 99.4% probability of no change. However, a Reuters poll of economists indicates that the Fed may cut rates twice this year, possibly beginning in September.

Yellen’s Speech on Friday May Impact Cryptocurrencies

Adding to the market’s cautious sentiment is Treasury Secretary Janet Yellen’s scheduled speech on Friday. Her comments are expected to impact riskier assets, including cryptocurrencies. Past speeches by Yellen have shown that her statements can lead to significant market reactions.

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