Investors withdrew a record US$563 million from U.S. spot bitcoin ETFs on Wednesday.
Leading the outflows was Fidelity's FBTC, followed by GBTC, ARKB and IBIT.
#BTC briefly rebounded after Chairman Powell ruled out a rate hike as the next step.
On January 2, investors shrugged off U. S. #bitcoin (BTC) investment trusts at the fastest pace ever after U. S. Federal Reserve Chairman Jerome Powell rejected the possibility of a rate hike.
According to Farside Investors and CoinGlass, net outflows from 11 ETFs totaled $563.7 million, the largest since the funds began trading on Jan. 11. Investors have withdrawn nearly $1.2 billion from the ETFs since April 24.
Fidelity's FBTC led the outflows on Wednesday, losing US$191.1 million in withdrawals. That's because BlackRock's FBTC and IBIT consistently raised funds in the first quarter, more than offsetting regular large outflows from the relatively expensive Gray #ETF (GBTC).
On Wednesday, GBTC was the second-largest outflow of funds at $167.4 million, followed by ARKB at $98.1 million and IBIT at $36.9 million. While Powell has taken a pure trust approach, minimizing risky assets including bitcoin, other funds have also suffered losses. The dovish stance means the central bank is prioritizing jobs and economic growth over excessive liquidity tightening.
On Wednesday, the Fed left the benchmark interest rate unchanged in a range of 5.25 percent to 5.5 percent, as expected. At a press conference, Fed Chairman Powell said the economy is too strong to cut rates and dismissed concerns about another rate hike or tightening liquidity measures in the wake of recent disappointing inflation data.
The Fed also said it would significantly reduce alternative liquidity tightening measures, known as quantitative tightening (QT), starting in June. Meanwhile, the U. S.
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