Bitcoin ETFs See $600 Million Exodus as Fed Takes Hawkish Turn

• Bitcoin leads outflows, with $621M withdrawn, reflecting cautious investor sentiment after FOMC meeting.
• Despite daily outflows, cumulative net inflow for digital asset ETFs remains positive at $15.11B, showing long-term confidence.
• High trading activity with $1.76B traded and overall ETF net assets growing 4.42% to $57.27B despite recent setbacks.

Digital asset investment products, particularly those focused on Bitcoin, experienced significant outflows of $600 million last week, marking the largest weekly withdrawal since March 22, 2024.

Crypto reporter Colin Wu attributed this sharp decline to a more hawkish-than-expected Federal Open Market Committee (FOMC) meeting, which prompted investors to reduce their exposure to fixed-supply assets, notably Bitcoin. The outflows were concentrated entirely in Bitcoin, with $621 million withdrawn.

According to sosovalue data , the daily total net inflow for digital asset ETFs reflected a notable outflow of $190.08 million. This indicates that more funds were withdrawn from these ETFs than were invested on that day. However, this daily loss indicates that the cumulative total net inflow is still positive at $15.11 billion. This suggests that there has been an overall net inflow into these ETFs, signaling long-term investment in the market.

The total value traded for these ETFs was $1.76 billion, indicating a high level of trading activity. Additionally, the total net assets of these ETFs amount to $57.27 billion, reflecting a slight increase of 4.42%. This shows overall growth in the net assets of these ETFs, despite the recent outflows.

Looking at the breakdown of individual ETFs, the most significant net outflow of $52 million occurred for the Grayscale Bitcoin Trust (GBTC) for the day, while the total net outflow stood at $18 billion. Its net assets total $18.35 billion, and the daily change was -1.62%.

BlackRock’s IBIT, in contrast, managed a net inflow of $1 million for the day, with cumulative net inflows at $18 billion and net assets totaling $19.99 billion. IBIT experienced a daily change of -1.58%.

Fidelity’s FBTC experienced a net outflow of $80 million for the day, with cumulative net inflows of $9 billion. Its net assets are $11.22 billion, showing a daily change of -1.51%. ARKB from Ark Investments reported a net outflow of $49 million for the day, with cumulative net inflows of $2 billion and net assets of $3.06 billion, reflecting a daily change of -1.64%. Bitwise’s BITB had a net outflow of $7 million for the day, cumulative net inflows of $2 billion, and net assets of $2.48 billion, with a daily change of -1.60%.

This latest development underscores the ongoing volatility yet heightened institutional interest in the Bitcoin market, particularly as traditional finance giants like BlackRock enter the space. Bitcoin ETFs will certainly be a key indicator of cryptocurrency’s integration into mainstream investment portfolios.