Bitcoin ETFs See Major Outflows Amid Market Volatility

U.S.-listed bitcoin (BTC) exchange-traded funds (ETFs) experienced significant net outflows on Thursday, marking the third consecutive day of withdrawals this week. This trend is reminiscent of the substantial outflows witnessed at the end of April. Preliminary data from SoSoValue indicates that Fidelity’s FBTC recorded the highest outflow, with $106 million withdrawn. Grayscale’s GBTC saw $62 million in outflows, and Ark Invest’s ARKB had $53 million taken out.

Conversely, BlackRock’s IBIT was the only ETF to record a net inflow, gaining $18 million. Other ETFs offered by Valkyrie, Franklin Templeton, Hashdex, and WisdomTree showed no inflow or outflow activity. The sole net inflow of the week occurred on Wednesday, with these U.S.-listed products adding $100 million.

The recent outflows total $564 million over three days, approximately half of the $1.2 billion withdrawn during the six-day period at the end of April. This activity comes amid a volatile week for bitcoin and the broader crypto market, centered around a key U.S. inflation report and a Federal Reserve meeting on Wednesday.

Lower-than-expected U.S. inflation briefly boosted bitcoin prices to $70,000 from $68,000. However, the price quickly retraced below $67,000, likely due to traders taking profits.

This pattern of significant withdrawals highlights the ongoing volatility and investor sentiment shifts in the cryptocurrency market, influenced by broader economic indicators and regulatory developments.