US Bitcoin ETFs are currently experiencing a historic outflow, with investors pulling out a staggering $672 million in just one day. This significant withdrawal comes in the aftermath of a brutal sell-off in the crypto markets, triggered by the latest decisions from the Federal Open Market Committee (FOMC).
According to data from Farside Investors, Thursday marked a dramatic shift, ending a streak of net inflows that had persisted since late November. The recent exodus eclipsed the previous outflow record of nearly $564 million, set earlier this May, when Bitcoin saw a sharp drop of 10% to around $60,000 over the course of a week.
Leading this outflow is Fidelity’s Bitcoin Fund (FBTC), which reported $208.5 million in withdrawals. Not far behind is Grayscale’s Bitcoin Mini Trust (BTC), which hit its lowest point since its launch, suffering over $188 million in net outflows. Other notable casualties include ARK Invest’s Bitcoin ETF (ARKB), down $108 million, and Grayscale’s Bitcoin Trust (GBTC), which lost nearly $88 million. Collectively, other competing ETFs from Bitwise, Invesco, and Valkyrie faced losses totaling $80 million.
Interestingly, despite this chaos, BlackRock’s iShares Bitcoin Trust (IBIT), which recently saw $1.9 billion in net inflows, recorded zero flows for the day. On a brighter note, WisdomTree’s Bitcoin Fund (BTCW) was the only one to gain traction, attracting $2 million in new investments amidst the storm.
As crypto prices took a dive, Bitcoin itself plummeted below $96,000, currently hovering around $97,000—a 4% decrease within 24 hours, as noted by CoinGecko. This downturn has triggered a staggering $1 billion in leveraged liquidations, further amplifying market volatility, reported Crypto Briefing.
The upheaval in the market follows the Federal Reserve’s latest hawkish posturing after its recent 25-basis-point rate cut, along with suggestions of fewer cuts in 2025. Despite ongoing volatility, the Crypto Fear and Greed Index indicates a sentiment of ‘greed’ at 74, a decrease of just one point from the previous day.
The current situation underscores the unpredictable nature of crypto investments and serves as a reminder of the challenges that even the most robust ETFs can face in turbulent markets. It’s a moment that invites empathy for investors feeling the pinch, punctuated by the biting reality of market dynamics. As we approach uncertain times, it’s vital for all involved to stay vigilant and informed.
