The bearish sentiment wasn’t limited to the US. Even on the global scale, digital asset investment products saw their largest outflow of over $600 million in almost three months.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
Bitcoin investors are apparently slowing down and it looks like the party period is over for US spot Bitcoin exchange-traded funds (ETFs). For a record-breaking spell of five weeks, the investment vehicles experienced continued inflows. However, last week saw the sentiments shift as all funds recorded a combined net outflow of $580.6 million.
According to analysts, this shift looks to be directly linked to last Wednesday’s Federal Open Market Committee (FOMC) meeting. The meeting, as it turned out, was more hawkish than expected. It saw the Fed deciding to maintain interest rates at 5.5% with only one potential rate cut later in the year, signaling that inflation persists. This stance has likely influenced investors’ decision to remove their funds from riskier assets like Bitcoin, leading to the outflows from spot Bitcoin ETFs.
As earlier mentioned, US spot Bitcoin ETFs had cumulatively enjoyed a remarkable 19-day streak of positive inflows, accumulating more than $4 billion over the period. However, the trend reversed last Monday, with the first net outflows coinciding with a drop in Bitcoin’s price after conflicting US economic data reports.
Notably, the outflows weren’t limited to a particular fund. Grayscale’s GBTC, the world’s largest Bitcoin fund, led the pack with $274.3 million in net outflows. Ark Invest’s ARKB and Fidelity’s FBTC followed closely behind by recording $149.7 million and $146.3 million in respective net outflows. However, BlackRock’s IBIT, albeit in an impressive manner, became the sole exception, attracting $41.6 million in net inflows.
The bearish sentiment wasn’t limited to the US. Even on the global scale, digital asset investment products saw their largest outflow of over $600 million in almost three months. That is according to a recent CoinShares report.
There is an interesting aspect to this trend though. While Bitcoin appears to be stumbling, Ether products are having a swell time. In sharp contrast to Bitcoin ETFs, these investment vehicles witnessed a net inflow of $13 million globally last week.
Expectations are high that the SEC could approve spot Ether ETFs by the end of summer. As Coinspeaker earlier reported, analysts like Bitfinex believe they could capture 10-20% of the inflows that Bitcoin ETFs currently enjoy.
The US Securities and Exchange Commission has approved 19b-4 forms for eight spot Ethereum ETFs from firms like BlackRock and Fidelity. However, on May 23. However, the issuers still need to have their S-1 filings approved before trading can begin.
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.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
