Capital outflows from Bitcoin ETFs continue pending US inflation data

There have been some notable developments in the US Bitcoin ETF market with large outflows seen on two consecutive days.

This comes ahead of the Federal Reserve's FOMC meeting and the release of key US inflation data scheduled for Wednesday.

Data from Farside Investors revealed that there was a net outflow of $11 million from US Bitcoin ETFs on June 200.4. Grayscale Bitcoin Trust (GBTC) recorded the highest outflow of $121 million, while ARK 21Shares Bitcoin ETF (ARKB) had $56.5 million worth of shares redeemed.

After these latest buyouts, cumulative GBTC outflows have now crossed the $18 billion mark.

Other funds that saw outflows were Bitwise Bitcoin ETF (BITB), which saw $11.7 million exit, Fidelity Wise Origin Bitcoin Fund (FBTC), which saw $7.4 million in outflows, and VanEck Bitcoin Trust (HODL), which lost about $3.8 million . On the other hand, BlackRocks iShares Bitcoin Trust (IBIT) remained relatively stable during this period.

On June 10, spot Bitcoin ETFs recorded their first daily outflow after four weeks of continuous inflows, reaching $64.9 million in redemptions.

Consequently the price of Bitcoin briefly fell to $66,000 as investors tried to minimize risks associated with high levels of volatility prevailing in various segments of the financial markets.

This observation was made by a cryptocurrency analyst at X, who pointed out that it is common for prices to fall just before the official release dates of US CPI data.

According to a publication by Santiment, US CPI data due today at 15:30 (Bulgarian time) should reveal that there was 3.4% annual growth between May 2023 and May 2024.

🧑‍💼🇺🇸 The May 2024 Consumer Price Index (CPI) report is scheduled to be released tomorrow (June 12th) at 12:30pm UTC (11 hours from now). Current experts expect a 3.4% YoY or 0.3% MoM increase…

🐂 If lower, it's a signal that inflation is slowing, increasing the likelihood of… pic.twitter.com/GDFWguyRbo

- Santiment (@santimentfeed) June 12, 2024

Therefore, any reduction in this figure has historically been seen as a positive event around which bulls tend to gather support, especially in the digital asset industry.