Spot Bitcoin exchange-traded funds (ETFs) recorded their highest outflows in a fortnight, with a staggering $470 million being withdrawn on Wednesday. This sharp exit came as the Federal Reserve implemented a rate cut, resulting in volatility in the stock market.
US-listed spot Bitcoin ETFs lost $470 million according to data from Farside Investors as Bitcoin’s price fluctuated to $108,000 before a quick recovery.
Fidelity’s FBTC led the outflow, losing $164 million followed by ARK Invest’s ARKB with a decline of $143 million. BlackRock’s IBIT experienced an outflow of $88 million. Grayscale’s GBTC recorded an additional $65 million in outflows, while Bitwise’s Bitcoin ETF (BITB) faced a smaller loss of $6 million.
These outflows followed several days of consistent gains, with inflows of $149 million on Monday and over $202 million on Tuesday.
Bitcoin ETFs Outflow
Source: Farside Investors
The recent outflows have reduced total cumulative net inflows to $61 billion, with total assets under management dropping to $149 billion, which constitutes 6.75% of Bitcoin’s market cap, according to crypto investment analysis from SoSoValue.
Bitcoin Price Under Pressure Post Rate Cut
According to CoinGecko, Bitcoin’s price hovered between $108,201 and $113,567 over the past 24 hours. The price dropped even after the Federal Reserve’s interest rate cut of 25 basis points. It appears to have made some gains following a meeting between US President Donald Trump and Chinese President Xi Jinping, where they addressed trade tensions.
ETFs Maintain Large Bitcoin Holdings
Despite the outflows, ETFs still retain more than 1.5 million BTC valued at $169 billion, which is 7.3% of Bitcoin’s total supply according to Bitbo. BlackRock’s IBIT remains at the top with 805,239 BTC, followed by Fidelity’s ETF with 206,258 BTC and Grayscale’s GBTC holding 172,122 BTC.
In less concerning news regarding price fluctuations, Michael Saylor, the chairman of MicroStrategy, expressed optimism about Bitcoin’s future, predicting it could reach $150,000 by the end of 2025 due to favorable developments in the cryptocurrency sector.
