U.S.-listed spot bitcoin exchange-traded funds (ETFs) saw a second-straight day of outflows as traders likely derisked ahead of key macroeconomic reports scheduled for later Wednesday.
Data from SoSoValue shows the eleven ETFs recorded $200 million in net outflows on Tuesday, the highest since May 1 figures of $580 million. Redemptions came amid a BTC sell-off, during which the asset briefly tumbled to $66,200 before recovering.
Grayscale’s GBTC accounted for most of the $120 million in outflows, leading among its counterparts. GBTC continues its infamous run of being the worst-performing ETF by outflows since going live in January, racking up a cumulative $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. None of the ETFs saw any inflows.
Traders said the outflows were likely derisking action ahead of the CPI reading on Wednesday and the two-day Federal Open Market Committee (FOMC) meeting that ends today, during which the Fed’s monetary policy will be decided.
“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,” Singapore-based QCP Capital said in a Tuesday broadcast message.
However, the firm added that its long-term bullish view remained intact.
“Despite short-term headwinds, we think this might be a good opportunity to accumulate coin. Bullish events on the horizon, such as the eventual ETH spot ETF going live along with Biden and Trump in a verbal armsrace to win the crypto vote,” QCP said.
Additional headwinds are Treasury secretary Janet Yellen’s speech on Friday, which may cause a reaction in riskier assets such as cryptocurrencies based on comments, as previously reported.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
