Even with positive inflation data, the Federal Open Market Committee (FOMC) decided to keep the federal funds rate target range at 5.25% to 5.50% during their June meeting.
By Bena Ilyas
Edited by Julia Sakovich
Updated
2 mins read
After a brief two-day dip, US spot Bitcoin exchange-traded funds (ETFs) saw renewed investor interest on Wednesday, June 13th, 2024. These funds attracted a net inflow of $100.9 million, indicating a potential shift in sentiment after a record-breaking 19-day inflow streak was interrupted earlier in the week, according to SoSoValue.
Photo: SoSoValue
Fidelity Digital Assets’ FBTC fund was the top performer on Wednesday, with a net inflow of $51 million. BlackRock’s IBIT followed with $16 million, showing continued institutional participation in the Bitcoin market.
Bitwise’s BITB and VanEck’s HODL also experienced positive net inflows of $15 million and $12 million, respectively, indicating broader investor confidence. Even Ark Invest’s ARKB, known for its focus on disruptive innovation, added $9 million to its Bitcoin exposure.
Grayscale’s GBTC turned into a spot bitcoin ETF in January 2024. Since then, it has mostly seen negative net flows. On Wednesday, the fund reported no inflows. Funds from WisdomTree, Invesco, and others also saw no activity. Despite this, the total net inflow for all 11 US spot bitcoin ETFs is $15.52 billion.
Investor interest increased when key US economic data was released. The US Bureau of Labor Statistics reported that the consumer price index (CPI) for May was flat, possibly showing slower inflation. CNBC reported that this might have boosted investor confidence as they look for protection against rising prices.
Even with positive inflation data, the Federal Open Market Committee (FOMC) decided to keep the federal funds rate target range at 5.25% to 5.50% during their June meeting. CNN reported that the Fed’s decision shows their focus on fighting inflation, even if it slows economic growth. The Fed expects only one rate cut for the rest of 2024, showing their careful approach to avoiding deflation.
Bitcoin price reacted modestly to the influx of funds and economic developments. Over the past 24 hours, the world’s leading cryptocurrency experienced a slight increase of 0.25%, hovering around $67,556.
Photo: CoinMarketCap
While the price movement remains muted, the return of inflows into US spot Bitcoin ETFs suggests a potential shift in investor sentiment and a wait-and-see approach as the economic landscape continues to evolve.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
