Bitcoin ETFs See Outflows Amidst Market Volatility
Spot Bitcoin exchange-traded funds in the United States experienced outflows on Feb. 6 as Bitcoin struggled to break above the crucial $100K level, signaling potential challenges for its upward momentum.
According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded $140.3 million in outflows on Thursday, marking a shift from the previous two days of inflows totaling $407 million. Fidelity’s FBTC led the outflows with $103.25 million in redemptions, followed by Grayscale’s GBTC with $42.21 million withdrawn. Bitwise’s BITB was the only ETF to attract inflows, with $5.15 million from investors.
Despite the mixed performance, the total trading volume of the 12 Bitcoin ETFs reached $2.45 billion on Feb. 6, up from $2.04 billion the day before.
Macroeconomic Factors Influence ETF Movement
The renewed outflows in Bitcoin ETFs coincided with a broader market downturn driven by macroeconomic pressures. On Feb. 5, Bitcoin and altcoins faced selling pressure following a robust private payrolls report from ADP, raising concerns about potential changes in Federal Reserve interest rate policies.
Investors closely monitor U.S. employment data as it influences the Fed’s decisions on interest rates. A strong labor market could lead to prolonged rate hikes to combat inflation above the 2% target, potentially delaying anticipated rate cuts this year. At the time of writing, Bitcoin was trading at $97,341, down 0.5% for the day.
Ether ETFs Maintain Inflow Momentum
Contrary to Bitcoin ETFs, Ether ETFs continued to attract inflows on Feb. 6, marking the seventh consecutive day of positive fund flows. A total of $10.65 million entered the market, all directed towards BlackRock’s ETHA ETF, while other Ether funds saw no significant changes.
Spot Ether ETFs have witnessed increased demand, with over $500 million in inflows from Jan. 30 to Feb. 5, comprising 16% of total inflows since their launch. Ethereum was trading at $2,711, experiencing a 4.1% decline in the past day compared to Bitcoin.
This dynamic market environment emphasizes the importance of monitoring macroeconomic indicators and investor sentiment to navigate the evolving landscape of cryptocurrency exchange-traded funds.