After concluding their 19-day inflow sequence on June 10, US spot Bitcoin exchange-traded funds (ETFs) recorded their second consecutive day of outflows this week
The data from Farside indicates that on June 11, Bitcoin ETFs experienced a cumulative discharge of $200 million, with five issuers initiating the withdrawals.
Outflows from exchange-traded funds
Grayscale’s GBTC, which accounted for $121 million of the outflows, increased its total outflows to $18.03 billion. Ark Invest’s ARKB was the next to experience net outflows, with nearly $57 million. Bitwise’s BITB reported outflows of approximately $12 million, while Fidelity and VanEck experienced lesser net outflows of $7.4 million and $3.8 million, respectively.
Since their inception in January, the funds have generated a cumulative net inflow of $15.42 billion, despite these substantial outflows.
Bitcoin’s price plummeted to as low as $66,207 in the previous 24 hours as a result of these substantial outflows. Patrick Scott, a crypto analyst, expressed his opinion:
“Bitcoin ETFs are adding a new reflexive element to price, where off-hours dumps translate to outflows on the next trading day.”
Bitcoin has since rebounded to $67,449 at the time of publication.
FOMC is anticipated to proceed
According to market analysts, the recent price performance of BTC and the outflows of ETFs suggest that investors are exercising caution in anticipation of the critical Federal Open Market Committee (FOMC) meeting.
Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper have all urged the Federal Reserve to reduce the federal funds rate from its two-decade high of 5.5%. This is particularly noteworthy. They contended that:
“This sustained period of high interest rates is already slowing the economy and is failing to address the remaining key drivers of inflation.”
Nevertheless, the market anticipates that interest rates will remain unchanged. According to the CME FedWatch Tool, 99.4% of investors anticipate that the rate will remain at its present level of 525-550 basis points.
