On Tuesday, the eleven spot Bitcoin Exchange-Traded Funds (ETF) recorded a net outflow of $200 million. This marks the second consecutive day and the highest daily outflow since May 1.
Grayscale’s GBTC Leads Bitcoin ETF Outflow
According to data from SoSoValue, Grayscale Investment’s GBTC was the primary driver of the outflows, accounting for $120 million. Notably, GBTC has emerged as the worst-performing ETF in terms of outflows since its launch in January, with a cumulative total exceeding $18 billion.
Other notable Bitcoin ETF outflows occurred in ARK Invest’s ARKB, Bitwise’s BITB, Fidelity’s FBTC, and VanEck’s HODL. ARKB recorded outflows of $56 million, BITB; $12 million, FBTC; $7 million, and HODL was the least with $4 million.
Market experts believe the outflows are a response to the upcoming Consumer Price Index (CPI) data release today and the proposed Federal Open Market Committee (FOMC) meeting on Thursday. The FOMC’s meeting is highly anticipated as the Federal Reserve’s monetary policy decisions will be announced.
“Markets are [in] risk-off mode ahead of CPI and FOMC tomorrow,” stated Singapore-based QCP Capital in a broadcast message.
“This month’s FOMC meeting will also unveil the Dot Plot, offering insights into the Fed’s projected interest rate cuts for the remainder of 2024,” the firm added.
Bitcoin Recovers from Dip
Meanwhile, the recent outflows from spot Bitcoin ETF products coincided with a sell-off in Bitcoin (BTC), the world’s leading cryptocurrency. The price briefly dipped to $66,200 before recovering slightly.
At press time, BTC is trading at $67,977, representing a 1.6% increase in the past 24 hours. However, the trading volume decreased by 10.9% to $28.5 billion, indicating subdued interest from investors.
Despite these short-term headwinds, QCP Capital maintains a long-term bullish perspective on Bitcoin. The firm sees potential buying opportunities arising from the current market conditions. Additionally, anticipated bullish events like the launch of a potential spot Ethereum ETF and the upcoming U.S. Presidential election could further influence the market.
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