Bitcoin
Bitcoin ETFs See $200M Net Outflows in “Risk Mode” Ahead of FOMC and CPI
US-listed bitcoin exchange-traded funds (ETFs) saw a second consecutive day of outflows as traders likely dismissed risks ahead of key macroeconomic reports scheduled for Wednesday.
SoSoValue Data shows that the eleven ETFs recorded $200 million in net outflows on Tuesday, the highest amount since May 1 at $580 million. The redemptions came amid a BTC sell-off, during which the asset briefly fell to $66,200 before recovering.
Grayscale’s GBTC accounted for the majority of the $120 million in outflows, leading among its peers. GBTC continues its infamous run of being the worst-performing ETF in terms of outflows since it launched in January, accumulating $18 billion in outflows.
Ark Invest’s ARKB, Bitwise’s BITB, Fidelity’s FBTC, and VanEck’s HODL recorded outflows ranging from $56 million to $7 million. Neither ETF saw any inflows.
Traders said the outflows would likely hurt the stock ahead of Wednesday’s CPI reading and the two-day Federal Open Market Committee (FOMC) meeting ending today, during which the Fed’s monetary policy will be decided.
“Markets are [in] risk mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which tells the market how many cuts the Fed anticipates for the rest of 2024,” Singapore-based QCP Capital said in a message broadcast on Tuesday.
However, the company added that its optimistic long-term outlook remained intact.
“Despite short-term headwinds, we believe this could be a good opportunity to accumulate coins. Bullish events on the horizon, like the eventual ETH spot ETF going live alongside Biden and Trump in a verbal arms race to win the crypto vote,” said QCP.
Additional headwinds are Treasury Secretary Janet Yellen’s speech on Friday, which could cause a backlash in riskier assets like cryptocurrencies based on comments, as previously reported.