Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. have experienced a significant drop, recording their second consecutive day of net outflows ahead of the Federal Reserve’s FOMC meeting and the key U.S. inflation data release scheduled for Wednesday.
According to data from Farside Investors, U.S. BTC ETFs saw $200.4 million in net outflows on June 11. The majority of these outflows were attributed to the Grayscale Bitcoin Trust (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB), which saw withdrawals amounting to $121 million and $56.5 million, respectively.
The recent outflows have pushed the total net outflows from the GBTC spot Bitcoin ETF beyond the $18 billion mark, as per Farside Investors’ data. Additionally, other ETFs, including the Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), and VanEck Bitcoin Trust (HODL), recorded net outflows of $11.7 million, $7.4 million, and $3.8 million, respectively.
In contrast, some spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), remained neutral with no significant inflows or outflows reported.
This trend follows the initial net outflows on June 10, which ended a four-week streak of constant inflows, totaling $64.9 million. The leading cryptocurrency, Bitcoin, briefly dropped to $66,000 as investors sought to minimize their risk exposure ahead of the upcoming economic data.
Crypto trader and analyst Max, known on X, highlighted that this pattern of downward movement ahead of the U.S. CPI data release is not unprecedented. Historically, a decline in the U.S. inflation rate has been bullish for the crypto market.
The U.S. inflation data, set to be released at 12:30 UTC, is anticipated to show a 3.4% year-over-year (YoY) increase between May 2023 and 2024, according to experts cited in a Santiment post on X.
As investors and market participants await the crucial data and the Fed’s subsequent decisions, the volatility and reactions within the BTC ETF space underscore the heightened uncertainty and cautious sentiment prevailing in the crypto market.
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