banner

Market Dynamics: Fidelity’s FBTC Leads Bitcoin ETF Outflows

Fidelity’s FBTC, rather than GBTC, led the charge in outflows on Wednesday, raising concerns among bullish investors.

Despite Federal Reserve (Fed) Chairman Jerome Powell dismissing the possibility of a rate hike, investors rapidly offloaded U.S.-based spot bitcoin (BTC) exchange-traded funds (ETFs) on Wednesday. This resulted in a combined net outflow of $563.7 million across 11 ETFs, marking the largest withdrawal since their inception on January 11. The trend continued a five-day streak of losses, with investors withdrawing nearly $1.2 billion from the ETFs since April 24, according to data from Farside.

Fidelity’s FBTC saw the most significant outflows on Wednesday, totaling $191.1 million. This trend is concerning for bullish sentiments, given that FBTC and BlackRock’s IBIT had consistently attracted funds in the first quarter, often offsetting the significant outflows from the relatively expensive Grayscale ETF (GBTC).

On Wednesday, GBTC experienced the second-largest outflow of $167.4 million, followed by ARKB’s $98.1 million and IBIT’s $36.9 million. Despite Powell’s net-dovish approach providing support for risk assets, including bitcoin, other funds also experienced significant withdrawals. A dovish stance indicates a preference for prioritizing employment and economic growth over tightening liquidity excessively.

During Wednesday’s meeting, the Fed opted to maintain the benchmark interest rate unchanged between 5.25% and 5.5%, as anticipated. Powell underscored the strength of the economy, signaling no inclination to cut rates while dispelling concerns about potential renewed rate hikes or liquidity tightening sparked by recent disappointing inflation figures.

Similar to other risk assets, bitcoin is sensitive to anticipated shifts in liquidity conditions. Following Powell’s comments, it briefly rallied from $56,620 to $59,430. Concurrently, the yield on the 10- and two-year Treasury notes declined alongside the dollar index.

However, BTC’s rebound was short-lived, retreating to $57,300 at the time of writing. Earlier this week, Hong Kong introduced Asia’s inaugural spot bitcoin and ether (ETH) ETFs, but they debuted with lackluster volumes, exacerbating the sentiment downturn in the crypto market.

banner

Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

Follow Us

Top Selling Multipurpose WP Theme

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

banner

Crypto feed news

Our team of crypto enthusiasts and market mavens is on a mission to deliver the latest, juiciest, and most insightful updates from the ever-evolving world of cryptocurrencies.

@CryptoFeedNews 2023 All Right Reserved. Designed and Developed by TheDevThingz

Skip to content