On Wednesday, U.S.-listed spot bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) faced significant outflows as ongoing macroeconomic uncertainties dampened the cryptocurrencies’ price outlook.
In total, eleven bitcoin ETFs experienced a combined net outflow of $582 million, marking the second-highest outflow since these investment products began trading a year ago, according to data from SoSoValue. The withdrawal was just shy of the record $680 million seen on December 19. Fidelity’s FBTC ETF saw the largest loss, with $258 million withdrawn, followed by BlackRock’s IBIT, which bled $124 million.
Ether ETFs also experienced substantial losses, with withdrawals totaling $159.3 million— the largest outflow since July 26, when ether ETFs saw $162 million in withdrawals.
These outflows come amid growing concerns over U.S. inflation, which has sparked increased volatility in the bond markets, leading to a sell-off in risk assets. Over the past three days, bitcoin’s price has dropped by nearly 8.5%, continuing its struggle to maintain momentum above the $100,000 level.
Minutes from the Federal Reserve’s December 18 meeting, released on Wednesday, showed that officials believed the central bank was approaching the point where it would slow its pace of policy easing. The minutes also highlighted concerns over the inflationary impact of the policies of incoming President Donald Trump.
However, some analysts remain optimistic, anticipating a potential rebound after Friday’s nonfarm payrolls report.
“The U.S. employment report on Friday will be closely watched by investors, as it will offer important insights into the U.S. economy’s health. We expect limited volatility heading into the weekend and recommend maintaining a strong position in digital assets, with a preference for Bitcoin over Ethereum,” said Valentin Fournier, an analyst at BRN, in an email.
